In a bid to improve liquidity in delivery-based commodity derivatives, market regulator SEBI has reduced the deliverable period to three days from five days.

Based on representations received from market participants and deliberations by Commodity Derivatives Advisory Committee, the Minimum duration of staggered delivery stands revised to three working days, said SEBI in a circular.

The circular shall be effective from July 1, for contracts where staggered delivery is scheduled after this date, it added.

Ajay Kumar, Director, Kedia Commodities said, the move will boost volumes of derivatives trading in agriculture commodities, and few metals as investors will be left with more days to trade without taking delivery.