The National Commodity Clearing Limited (NCCL) on May 12, 2026, notified regarding the Concentration Margin – Revision in Threshold Levels.
The following has been stated:
• NCCL has revised the framework for the levy of Concentration Margin in the commodity derivatives market with reference to SEBI’s Master Circular and earlier NCCL circulars on risk management.
• The revised framework prescribes concentration margins at both the clearing member level and client level based on the percentage of their open interest (OI) in a commodity compared to the total market-wide OI. At the clearing member level, no margin will apply up to 10% OI share, while margins ranging from 1% to 5% will apply progressively for higher concentration levels above 10%. At the client level, separate margin slabs have been prescribed for broad/non-agricultural commodities and narrow or sensitive agricultural commodities, with higher margins applicable to sensitive commodities.
• The concentration margin will apply only when the overall market-wide OI in a commodity exceeds the threshold levels specified by NCCL and will be charged only on the incremental OI falling within each slab. Hedging positions held under approved Hedge Codes will be exempt from client-level concentration margin to the extent of such hedged positions.
• The circular also clarifies that concentration margins will apply to Eligible Foreign Entities (EFEs), and NCCL may impose higher margins if required. Members are advised to stay updated regarding the list of narrow and sensitive agricultural commodities provided in Annexure II.
• The revised framework will come into effect from the beginning of trading on June 01, 2026.
[Notification no. - NCCL/RISK-026/2026]
