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Our Bureau

Kolkata. Nov. 2

The Forward Markets Commission has further tightened the noose on overplay of speculative interests in the commodity futures market. Subsequent to its directive in May this year, the regulator has asked the exchanges to levy higher penalty on errant members for taking fresh positions in the last five days of trading on sellers or both option contracts.

The move is also a follow-up to the FMC's initiative to drive the commodity futures market towards compulsory delivery mode.

Quoting the recent FMC directive, leading commodity exchanges have already warned its members that any broker increasing its open interest position in sellers or both option contracts should be levied a penalty of Rs 2,500 per occurrence.

Though the circulars issued by the commodity exchanges do not refer to the previous incidence of penalty, sources in broking community said that it has gone up from as low as Rs 1,000 per occurrence.

Sources in broking community have, however, confirmed that most of the members have already stopped taking fresh positions during the last five days of trading other than in compulsorily delivery backed contracts.

More Stories on : Commodity Exchanges | Regulatory Bodies & Rulings

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Fine for taking fresh positions before contract expiry hiked

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