The Securities and Exchange Board of India (SEBI) has announced a relaxation in capacity planning requirements for stock exchanges and clearing corporations operating in the commodity derivatives segment. The decision is intended to align infrastructure obligations with actual trading volumes while maintaining robust system safeguards.

Lower Installed Capacity Requirement

Previously, SEBI regulations required trading platforms in the commodity derivatives segment to maintain system capacity equivalent to four times the peak order load.

Under the revised guidelines, exchanges and clearing corporations are now required to maintain installed capacity at a minimum of two times the projected peak load. The reduction reflects relatively lower utilisation levels in the commodity derivatives segment and aims to optimise infrastructure investments by Market Infrastructure Institutions (MIIs).

75% Utilisation Threshold Remains in Place

While easing the baseline capacity multiplier, SEBI has retained a critical performance safeguard. If utilisation of any key system component crosses 75% of installed capacity, the concerned MII must promptly initiate corrective action.

Such measures could include system optimisation, application fine-tuning, or infrastructure expansion. These steps must be undertaken under the oversight of the Standing Committee on Technology (SCOT), ensuring proper governance and monitoring.

Mandatory Policy Integration

The regulator has directed MIIs to formally embed the 75% utilisation trigger within their Capacity Planning and Real-Time Performance Monitoring Policies. This ensures a systematic and proactive mechanism for tracking system performance and responding to potential stress.

Implementation Timeline

SEBI has extended the broader framework on capacity planning and real-time monitoring to include the commodity derivatives segment, with the revised capacity norms being the primary adjustment.

Stock exchanges and clearing corporations must submit their updated, segment-specific policies to SEBI within three months, after securing approvals from SCOT and their respective boards.

The new guidelines will take effect from May 11, 2026.

Summary

SEBI has reduced the installed capacity requirement for the commodity derivatives segment from four times to two times the projected peak load, easing infrastructure obligations for exchanges and clearing corporations. However, a 75% utilisation trigger remains in place to ensure system stability. The revised norms will be implemented from May 11, 2026, with MIIs required to update and submit their policies within three months.

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