This note is a response to the SEBI Consultation paper on measures to enhance efficiency in polling methodology adopted for spot price determination of commodities.
There are two main themes to this response note. First, that while much of the current regulatory regime in this field is consistent with the current global best practice, what is missing in the existing framework, is the measurement of consistency of its implementation. Second, that details on the polling process should be left to the exchanges since they are best placed to evaluate the costs and the benefits of such processes. From the perspective of clarity of outcomes and accountability, it is better if SEBI maintains control only on regulatory outcomes.