Task force has been set up to review the risk management norms: SEBI

The regulator of capital markets, SEBI has set up a task force to review the existing risk management norms. The step has been taken to review the norms for national level commodity bourses following the suspension of trading for castor send on NCDEX.

Source

According to report, after watching the recent developments in the castor seed futures contract, sebi took the step to relook at the existing norms on risk management, delivery mechanism and other issues related to it.

Last year in October, sebi worked on the framework of risk management for commodity derivatives exchange but after witnessing the recent developments of high volatility in commodities like turmeric has forced sebi to set up a task force to tighten the norms.