The paper proposes to extend the benefit of early pay- in (EPI) in the commodity derivatives segment to options contracts, in addition to its current applicability to futures contracts. The existing framework allows market participants to deposit certified goods against futures contracts, potentially exempting them from certain margins except mark-to-market margins. The Working Group and the Commodity Derivatives Advisory Committee has recommended extending this benefit to options contracts as well. The draft circular proposes to provide EPI for all derivatives contracts. The feedback/ comments from the stakeholders are invited.
