#Commodity Derivatives

Bombay High Court upholds SEBI and MCX's authority to fix negative settlement prices for crude oil futures, ruling DDR is a contractual term distinct from 'price' under the Sale of Goods Act. The judgment reinforces regulatory flexibility in commodity derivatives amid market volatility, impacting traders and exchanges.

Bombay High Court rules that commodity futures contracts with negative settlement prices are binding under SEBI and MCX regulations, superseding general contract law principles. The judgment reinforces market integrity by validating derivative-specific settlement mechanisms, even when they deviate from traditional sale of goods norms.