Capital markets regulator The Securities and Exchange Board of India (SEBI) on Friday added diamond, base metals and alloys to the list of eligible liquid assets for the commodity derivatives segment.
Currently, the list of commodities permitted as liquid assets consists of bullion, steel and agricultural commodities.
“Considering the introduction of compulsory delivery based diamond and base metal derivatives contracts and feedback received from the stakeholders, it has been decided to include diamond, base metals and alloys in the list of permissible liquid assets…,” as specified in its earlier circulars, SEBI said.
SEBI further said “all commodities to be accepted as collateral should be of same quality specification which is deliverable under the contract specification of commodity derivatives being traded on the exchange”.
The market regulator has prescribed minimum haircut for metals and alloys at 30 per cent and diamond at 40 per cent.