Description

SEBI has extended the suspension on trading in Crude Degummed Soybean Oil Futures (DEGUMSYOIL) and other agri-commodity derivative contracts till March 31, 2027, continuing restrictions originally imposed in December 2021.

Summary

NSE has notified all members that SEBI has extended the suspension on trading in Crude Degummed Soybean Oil Futures (DEGUMSYOIL) and several other agri-commodity derivative contracts till March 31, 2027. This extension continues a series of rolling suspensions originally directed by SEBI on December 19, 2021.

Key Points

  • SEBI originally suspended trading in select agri-commodity derivative contracts on December 19, 2021, effective till December 20, 2022.
  • The suspension has been progressively extended: to December 20, 2023; then December 20, 2024; then January 31, 2025; then March 31, 2025; then March 31, 2026; and now to March 31, 2027.
  • The current circular (NSE/COM/73576, Circular Ref. No. 18/2026) references the prior circular NSE/COM/67168 dated April 01, 2025.
  • The SEBI Press Release (PR No. 21/2026) dated March 27, 2026 is enclosed as an annexure.

Regulatory Changes

SEBI has directed Stock Exchanges with a Commodity Derivatives Segment to continue suspension of trading in derivative contracts for the following commodities:

  1. Paddy (non-basmati)
  2. Wheat
  3. Chana
  4. Mustard seeds and its derivatives (its complex)
  5. Soya bean and its derivatives (its complex) — including DEGUMSYOIL
  6. Crude Palm Oil
  7. Moong

The suspension is extended till March 31, 2027.

Compliance Requirements

  • All NSE members in the Commodity Derivatives Segment must note and comply with the continued suspension on trading in DEGUMSYOIL and related agri-commodity futures contracts.
  • No new positions may be initiated in the suspended contracts; existing positions (if any) remain subject to prior exchange/SEBI directives.
  • Members should ensure their trading systems and client communications reflect the extended suspension period.

Important Dates

  • Original suspension date: December 19, 2021
  • Current suspension valid till: March 31, 2027
  • SEBI Press Release date: March 27, 2026
  • NSE Circular date: April 01, 2026

Impact Assessment

The continued suspension of DEGUMSYOIL and allied agri-commodity futures has significant market impact:

  • Market participants — traders, hedgers, and agricultural commodity market participants — remain unable to use these futures contracts for price discovery or hedging purposes on NSE for at least another year.
  • Price risk management for entities involved in soya bean oil, mustard, wheat, chana, and other covered commodities continues to be constrained, potentially pushing activity to OTC or offshore markets.
  • The repeated annual extensions (now six consecutive extensions) suggest a long-term regulatory stance rather than a temporary measure, requiring businesses to plan accordingly.
  • No change in the list of suspended commodities; the scope remains the same as originally directed in December 2021.

Impact Justification

Extends a blanket SEBI-mandated trading ban on a broad set of agri-commodity futures including soya bean and its derivatives for another year, directly preventing trading activity in these contracts on NSE.