NCDEX gets tough with members

Mumbai, Aug 30 | Updated: Aug 31 2006, 05:30am hrs
National Commodity and Derivatives Exchange (NCDEX) clarified that the client level position limit would be calculated on the basis of combined position of one client with different brokers.

The decision was taken for the purpose of levying penalties in case of violation of open interest limits, the exchange said in a circular on Tuesday. The same formula will apply to other commodity futures exchanges, an official from Forward Markets Commission said.

According to an official, the clarification came on the back of possible violation of open interest limits by clients trading through a number of members, after the FMC massively reduced trading limits last week.

Earlier, the commodity derivatives regulator had reduced open interest limits, for both clients and members, and asked exchanges to levy heavy penalties on violation.