The National Commodities and Derivatives Exchange (NCDEX)and Multi Commodity Exchange (MCX) will levy an initial margin of 10 per cent across all contracts of wheat and sugar contracts from Monday. Currently, the money to be paid as normal margin on wheat for buying contracts on NCDEX is 4.78 per cent and 4.41 per cent on sugar.

On the MCX, wheat attracts a margin of 8.9 per cent and sugar five per cent.

The exchanges clarified that the special margins, additional margins or any other margins levied shall be over and above the revised minimum initial margin, it said.

Wheat and sugar contracts on the futures exchanges have been increasing for the last few months on expectation of lower output this kharif season.

Market regulator, Forwards Market Commission, has implemented various measures such as cutting down the maximum an investor can buy or sell in a commodity and increase margins to bring down prices.

(This article was published in the Business Line print edition dated August 4, 2012)
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