Mumbai, May 12 -- India's markets regulator has proposed reviewing client-level position limits in agricultural commodity derivatives, signalling a possible recalibration of safeguards nearly nine years after the current framework was introduced.

In a consultation paper issued on Tuesday, the Securities and Exchange Board of India (Sebi) said the existing limits, framed in 2017, may no longer fully reflect the growth in India's commodity derivatives market.

Position limits are a risk-control tool in commodity markets. They cap the number of contracts a trader can hold in a commodity at any given time to prevent excessive speculation, concentration of positions, and potential price manipulation. Sebi's framework applies across clients, m...