# Sebi reduces commodity derivatives stress test limit to Z-score 5 2026-08-12T18:43:02+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets Markets regulator Sebi lowered the Z-score threshold for stress testing in commodity derivatives from 10 to 5, effective immediately. The change applies to the Core Settlement Guarantee Fund framework and uses 15 years of historical returns to calculate price movements. Sebi said the revision was made 'with the objective of facilitating Ease of Doing Business' for market participants. Under the old rule, price movements beyond a Z-score of 10 were replaced in peak historical returns. Now, extreme movements beyond a Z-score of 5 will be adjusted instead. Clearing corporations assess up to 15 years of commodity price data to estimate potential gains or losses over the applicable Margin Period of Risk (MPOR). ## Coverage - legal.economictimes.indiatimes.com - ndtvprofit.com Tags: commodity derivatives, compliance, SEBI, stress testing, Z-score Canonical: https://indianopinion.org/sebi-lowers-stress-testing-limit-for-commodity-derivatives/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/sebi-lowers-stress-testing-limit-for-commodity-derivatives/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.