# Sebi Examines Non-Agri Position Limits for Liquidity

> Sebi to boost commodity market liquidity without weakening risk controls.
- Title: Sebi Examines Non-Agri Position Limits for Liquidity
- Summary: Sebi to boost commodity market liquidity without weakening risk controls. Sebi is examining position limits for non-agricultural commodity contracts to…
- Keywords: sebi, commodity derivatives, position limits, liquidity, non-agri contracts, market regulation, physical settlement, money, business, Examines, Non-Agri, Position
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/stocks/news/sebi-examining-position-limits-for-non-agri-contracts-to-boost-liquidity/articleshow/134656225.cms
- Author: PTI
- Published: 2026-10-03T09:46:00+00:00
- Read time: 1 min
- Topics: sebi, commodity derivatives, position limits, liquidity, non-agri contracts, market regulation, physical settlement, money, business
## Sebi examines position limits
Market regulator Sebi is examining position limits for non-agricultural contracts to improve liquidity and depth without weakening risk controls.
## Phased approach for contracts
In some agricultural commodities, physical settlement from the outset can impede market development, and a phased approach could allow contracts to mature before physical settlement becomes mandatory.
## Guidelines to follow
Sebi has completed consultations on the matter and guidelines will follow.
## Reduce structural friction
The regulator is also working to reduce structural friction in commodity markets, including engaging with stakeholders on GST-related issues affecting participants who give or receive commodities through exchange platforms.
## Technology for market needs
Technology should serve the specific needs of commodity markets, which include producers, commercial users, farmers, processors and physical hedgers.
## Access without understanding
Access without understanding is not inclusion, he said, stressing the need for participants to understand both the utility and risks associated with commodity derivatives.

> Access without understanding is not inclusion
## Key takeaway

Sebi is examining position limits for non-agricultural commodity contracts to improve liquidity while maintaining risk controls.