FMC ups delivery default fine

The commodity futures market regulator Forward Markets Commission FMC has enhanced the penalty for default in delivery at the end of the contract from 0.5 per cent to a hefty five per cent.

FMC aso decided to remove all trading limits for the positions taken purely for hedging purposes on any commodity exchange, S Sundareshan, FMC chairman, told reporters after a meeting with all board members.

The decisions were taken following recommendations made by the JR Varma committee on risk management on Wednesday. 8220;This will be applicable for all contracts beginning November and the intention for delivery will have to be made clear at least five days before the contract expiry,8221; he said.