NCDEX imposes 5% additional margin on castor contracts

Our Bureau Ahmedabad | Updated on October 27, 2018 Published on October 27, 2018

The open interest has remained 100,000 contracts for most of the sessions since October 4.

Move follows spike in futures price since October 4

The National Commodity and Derivatives Exchange Ltd (NCDEX) on Friday imposed additional 5 per cent margin on all castorseed futures contracts following the sustained rally in the prices since October 4. The additional margin will be made applicable from October 30.

The near-month Castorseed contract for November futures on NCDEX hit an intra-day high of ₹5,538 on Friday before closing at ₹5,486, highest levels since ₹6,200 seen in 2011.

In its circular issued by the surveillance and investigation department, the NCDEX informed the trading and clearing members that "Additional margin of 5 per cent on both long side and short side will be imposed on all the running contracts and yet to be launched contracts in castor seed (CASTOR) with effect from beginning of day, Tuesday, October 30, 2018.”

November contract for castorseed futures witnessed unabated rally since October 4, when the prices had quoted at ₹4,680 a quintal. The open interest remained 100,000 contracts for most of the sessions since October 4.

Bleak crop prospects for the 2018-19 and strong demand for castor derivatives have pushed up activity in the contract. In the spot market at Deesa, castor seed prices hovered around ₹5,397 a quintal on Friday.

Published on October 27, 2018
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