SEBI Considers Scrapping CTM Norms in Options on Goods to Ease Compliance

• SEBI is considering discontinuing the Close-to-Money (CTM) framework for options on goods.
• The move aims to simplify regulations and improve ease of doing business in the commodity derivatives segment.
• Exchanges argue CTM adds complexity, is not well understood by participants, and increases operational challenges.
• CTM leads to broader margin applicability near expiry for goods options compared to futures options.
• SEBI previously removed CTM for options on futures, seeking uniformity across products.