SEBI chairman Tuhin Kanta Pandey outlined further changes to commodity derivatives at the Commodity Participants Association of India's twelfth convention in New Delhi on October 3, 2026. He said the regulator was examining position limits for non-agricultural contracts and had completed consultation on allowing some agricultural contracts to develop before physical settlement became mandatory. Guidelines on that phased approach were to follow, according to his published address.
Pandey also identified GST-related difficulties for participants delivering or receiving commodities through exchanges and promised continued engagement on them. Under Project Jagrook, SEBI planned more awareness work among farmers, farmer producer organisations, small businesses and hedgers. He cited electricity futures as a mechanism for generators, distribution companies and industrial consumers to manage power-price exposure, alongside weather derivatives linked to objective meteorological data.
The electricity contract has a defined scale and settlement method. NSE's June 2026 brochure specifies a trading unit of 50 megawatt-hours, with prices quoted in rupees per megawatt-hour excluding taxes and levies. It is cash-settled, so the futures contract does not itself deliver electricity to a factory or distribution company. Outstanding positions are marked to market daily, using the exchange's daily settlement price, rather than leaving the entire financial adjustment until expiry.
The same brochure describes final settlement using day-ahead power-market prices and volumes from IEX, PXIL and HPX across the expiry month. Its initial margin requirement is the higher of ten per cent or the amount calculated through SPAN, with additional margins possible during volatility. These terms specify how a power-price contract operates alongside physical electricity purchases: the exchange settles a financial position, while actual power supply remains a separate arrangement. The brochure predates the October speech and supplies the contract detail behind the regulatory discussion.
