Disseminate prices via SMS, Sebi tells commodity bourses

Markets regulator Sebi on Tuesday asked commodity exchanges to offer price dissemination facility to subscribers through SMS on a daily basis, a move that will help bring in transparency.

"Exchanges shall make efforts for registration of subscribers of price dissemination services and disseminate derivatives prices to them on a daily basis," Sebi said in a circular.

"Such direct price dissemination service would provide information to subscribers instantly in an efficient and transparent manner and thus shall be of great benefit to market participants."

The exchanges can provide this service through SMS or any other electronic communication facility -- instant messengers and e-mail -- for all commodities.

The service is to be provided free of cost to subscribers. However, the expenditure incurred for such price dissemination may be reimbursed from the interest accrued on the Investor Protection Fund (IPF).

Sebi has started regulating commodity markets since the merger of Forward Markets Commission (FMC) with the capital markets regulator in September last year.

In a separate circular, Sebi said "every recognised stock exchange and its members are required to maintain and preserve the specified books of account and documents for a period ranging from two years to five years".

All commodity derivatives exchanges can permit trading only from Monday to Friday from 10 am to 5 pm.