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Multi Commodity Exchange Clearing Corporation has accredited a warehouse for storing of base metals pledged for margin purpose in Arshiya Free Trade Warehousing Zone at Panvel in the outskirts of Mumbai.
The MCXCCL has expanded the scope of collateral to include metal deposits at the FTWZs. It will benefit the clients who would like to hold goods for a longer duration without going through the duty payment and clearing.
Traders on the futures platform can clear the goods after finding a committed buyer or else can redirect the cargo to other destination.
While holding the goods at the FTWZs, importers can now not only hedge on MCX but also avail extended facility of pledging the metal as collateral with the MCXCCL. The collateral will essentially have 30 per cent haircut on the discounted value arrived at after adjusting for import duty and transport cost.
Narendra Ahlawat, Managing Director & CEO, MCXCCL, said by facilitating the FTWZ connect importers can hedge on the exchange with added benefit of availing margin.
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