New Delhi, Sept. 9 -- The Securities and Exchange Board of India (Sebi) eased position limits for agricultural commodity derivatives and revised penalties for breaches, in a move aimed at making it easier for market participants to trade.

The circular issued on Wednesday revises provisions governing position limits and penalties under Sebi's Master Circular for the commodity derivatives segment. The regulator said the existing limits, introduced in 2017, were being reviewed following stakeholder representations, recommendations from a working group and the Commodity Derivatives Advisory Committee, and public comments.

Position limits are a risk-control tool in commodity markets. They cap the number of contracts a trader can hold in a co...