National Commodity and Derivatives Exchange has slapped a 10% minimum initial margin on chickpea, soyabean, rapeseed and soyaoil futures, the exchange said. The margin, to be effective from Thursday, will be on top of the special and additional margins levied on these contracts, it added.
The commodity market regulator, the Forward Markets Commission (FMC), cut the size of contracts a trading member can hold in chickpea and oilseed futures from Tuesday to curb excessive speculation amid expectations of a drop in output.
This apart, FMC has initiated several steps in the past few days, such as suspending guar futures and imposing special margins on select farm items, including potato, chickpea, rapeseed, cardamom, soyabean and pepper, to stem manipulative element and ensure fair trading.
Regulatory activities assumed renewed significance in the past one month after industry bodies complained of manipulation in guar contracts that gained 120% in just one month, also raising suspicion that speculation in the futures market may drive up spot prices. Food and consumer affairs minister KV Thomas had also asked the FMC to probe industry body Assocham?s charges of manipulation in guar contracts.
FMC chairman Ramesh Abhishek had told FE on March 30 that the regulator wasn?t planning to ban futures trading of any commodity despite a recent flare-up in prices of some farm items, but it will step in with ?available tools? to curb speculation.