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The Economic Times
The Economic Times
Business

Sebi lowers stress testing limit for commodity derivatives

Markets regulator Sebi on Wednesday lowered the Z-score limit used for stress testing in the commodity derivatives market to 5 from 10, in a move aimed at easing compliance for market participants.

Under the existing framework, price movements corresponding to a Z-score of 10 replace extreme price movements beyond that threshold in peak historical returns of all commodities.

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