The Hindu Business Line : NMCE launching new series futures contracts

Ahmedabad, Aug. 9 The National Multi-Commodity Exchange (NMCE) has reduced the daily price fluctuation limit in all raw jute futures contract on its terminals with effect from today, in pursuance of the Forward Markets Commission (FMC) direction.

It is also launching new series in turmeric, soya oil , guar-seed and channa desi futures contracts with effect from tomorrow, according to a release.

Daily cap

The daily price fluctuation on either side, also called ‘daily cap’ or ‘upper and lower circuits’, is now revised to four per cent of the previous ‘close price’ / ‘opening price’.

If trade hits this price limit on either side, trade is stopped for 15 minutes and the limit is extended by another two per cent. But, no trade is permitted during the day beyond the revised maximum price limit of six per cent. Earlier, the daily cap was six per cent and then another three per cent, subject to maximum limit of nine per cent in a day.

Expiry

The new contracts in turmeric, soya oil and guar-seed will expire on December 20, while delivery will begin on December 17. The new contracts for channa desi will expire on February 20, 2008, while the delivery will begins on February 18.

The delivery centre for turmeric is the Central Warehousing Corporation (CWC) warehouse at Erode in Tamil Nadu, while that for soya oil is Indore in Madhya Pradesh. The delivery centres for guar-seed are Jodhpur (basis centre), Bikanerand Nokha in Rajasthan and Deesa in Gujarat with freight discount through CWC Receipt. The delivery centre for channa is CWC warehouse in Delhi.