The Securities and Exchange Board of India (Sebi) has issued a consultation paper proposing a review of client-level position limits for agricultural commodity derivatives, which were last updated in 2017. The proposed changes aim to double the existing position limits to 2% for broad commodities, 1% for narrow commodities, and 0.5% for sensitive commodities. Position limits serve as a risk-control mechanism to prevent excessive speculation and potential price manipulation in the market. Additionally, Sebi plans to ease the criteria for classifying commodities as 'broad', requiring a minimum delivery supply of 1 million tonnes or a market value of ₹5,000 crore (approximately $600 million USD) over the past five years. The regulator also seeks to modify the penalty structure for breaches of position limits, proposing to cap penalties at ₹2 lakh (roughly $2,400 USD) for violations exceeding 2% of prescribed limits. The public is invited to provide feedback on the consultation paper until June 2.