SEBI Proposes Early Pay-In Benefit To Options Contracts In Commodity Derivatives, Invites Comments

Today, the Securities and Exchange Board of India (SEBI) issued a consultation paper proposing to extend the applicability of early pay-in, currently available for futures contracts, to options contracts in the commodity derivatives segment.

SEBI noted that under the existing framework, market participants can deposit certified goods in accredited warehouses as early pay-in against futures contracts, which enables margin benefits, except for mark-to-market margins.

It further stated that this benefit is presently not available for options contracts, though stakeholders have recommended its extension.

Therefore, SEBI has proposed extending the early pay-in mechanism to options contracts, based on the recommendations of the Working Group and the Commodity Derivatives Advisory Committee.

The regulator has invited public comments on the proposal by 26 May 2026.