The Securities and Exchange Board of India (SEBI) on Thursday this week revised the deadline to generate the last RPF in a day for the commodity division. RPF is a file released by clearing companies and will contain parameters for calculating margin requirements for members, i.e. brokers. Based on this profile, members are required to collect margins from their clients who are short on them. Basically, checking the margin collection in advance by the members from their clients.

So far the RPF release deadline is 5 PM. Thus, the commodities sector that trades until 9pm (globally linked agricultural commodities like crude palm oil, cotton, etc.) and 11:30pm (metals, energy, etc.) Exactly on September 1 this year. The time constraints in money transfer that existed previously was also one of the reasons.

As the Reserve Bank of India has now made all electronic transfer methods available around the clock, SEBI has announced that the commodity sector will receive an additional RPF after 5pm. Accordingly, there are two additional RPFs for commodities traded until 9pm and three for those traded until 11:30/11:55pm. So, if you are trading commodities and think that after 5pm you won’t get a margin call, beware, things will change as of next month.

The review of sending additional RPFs will take effect from January 15, 2022.

Send your inquiries to derivatives@thehindu.co.in

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