MCX launches aluminium, zinc compulsory delivery contracts

Our Bureau Mumbai | Updated on January 07, 2019 Published on January 07, 2019

MCX has amended aluminium and zinc contract specifications to make delivery ‘compulsory’ against the current optional delivery mechanism. The physical settlement will be executed through the Comris account.

The exchange has received permission from market regulator Sebi to modify the contract specifications in aluminium and zinc contracts from ‘both options’ (cash and delivery) to ‘compulsory delivery’.

SEBI has further permitted the exchange to implement the said modifications for aluminium March and April futures contracts and for the Zinc April contract provided these contracts have no open interest.

Subsequently, the modification has been implemented in these contracts from January 3, said the exchange.

The due date final settlement price will be based on domestic polled spot prices against the current practice of following international prices. The price calculation will include LME price in rupee term, premium, customs duty and other charges, which will push up base aluminium prices from ₹130 a kg to ₹142 a kg and zinc prices to ₹195 a kg from ₹170 a kg.

Trading in both the contracts on expiry day has been limited to 5 pm against 6.30 pm while the tender period will be the last five days of the contract and an incremental margin of 5 per cent will be levied for the last five days.

Published on January 07, 2019
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