Financial Daily from THE HINDU group of publications
Tuesday, May 30, 2006
Financial Daily from THE HINDU group of publications Tuesday, May 30, 2006 |
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Regulatory Bodies & Rulings Agri-Biz & Commodities - Commodity Exchanges Markets - Investor Protection Our Bureau
Mumbai , May 29 The Forward Markets Commission (FMC) has directed the commodities exchanges to constitute an Investor Protection Fund. All fines and penalties collected by the exchange should form a part of the fund. Detailed guidelines for the constitution of fund would be issued separately, FMC said in a press release. The corpus should be utilised to safeguard the interests of investors, particularly the small investors.
Special margins
FMC has also decided to reduce the special margins by 15 per cent in urad (black matpe) and tur (pigeon pea). This reduction/removal of special margin on buyer is from May 27 in all the running contracts. FMC had on March 23 imposed special margins payable by buyers at the rate of 15 per cent for all the running contracts of urad and tur. The special margin was further increased to the level of 25 per cent in case of urad on April 7. The move comes after reviewing the price and trade positions in these contracts and considering the changes made in the both the contracts in the both the contracts. After examining the details of the violations and the penalties imposed by the exchange, the commission has decided to impose stricter penalties for violation of limits on open positions by clients/members. In case of repeated violations penalty would also include suspension of the member.
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