New Delhi: The Securities and Exchange Board of India (Sebi) is creating three categories for agricultural commodities and will introduce limits that investors can hold for each one to try to reduce price fluctuations.

Commodities will be classed as sensitive, broad or narrow, based on the frequency of government interventions in their markets and overall availability, Sebi said on Tuesday.

The new position limit for sensitive commodities will be 0.25% of deliverable supply, Sebi said in a circular.

It will be 0.5% for narrow commodities and 1% for broad commodities, it added. Reuters