FMC halves margins on soyabean,mustard seed contracts

Commodity markets regulator FMC has reduced margins by 50% on all contracts of soyabean and mustard seeds from today.

Written by Agencies | New Delhi | Published:June 8, 2012 2:53 pm

Commodity markets regulator FMC has reduced margins by 50 per cent on all contracts of soyabean and mustard seeds from today.

In a circular,Forward Markets Commission (FMC) said that special margins of 10 per cent (in cash) on the long side of all existing contracts of soyabean and rapeseed/mustard (R/M) seeds have been reduced to 5 per cent.

“The structure of special margin will come into effect from the beginning of trading day June 8,2012,in all the running contracts and yet to be launched contracts,” the circular added.

In view of the recent trends in the prices of Soyabean and R/M seed contracts,the Commission has decided to revise the existing rate of special margin,FMC said.

Margin is a deposit that is required to be given by traders before entering into a pact to buy or sell the commodity at future date.

The soyabean contract for June was trading at Rs 3,429 per quintal at 1115 hours,against the previous closing of Rs 3,420 a quintal on the NCDEX.

The mustard seed contract for June was trading down 0.67 per cent at Rs 3,706 a quintal at 1130 hours,against previous close of Rs 3,731 a quintal.

The regulator in April had reduced open position limits – a restriction on the quantity of commodities that can be traded in the futures market – in soyabean,soya oil,mustard seed and chana to curb excessive price volatility.

For all the latest News Archive News, download Indian Express App

    Live Cricket Scores & Results
    Express Adda