Friday, 9 March 2012

FMC elevates margins in pepper and mentha oil contracts.

Scantily three workweeks after removing especial margins altogether feeding pepper plant declarations, the Forward Markets Commission (FMC) raised 10 per cent extra margin on both the long side and brusque side in the good, to reduce volatility.

According to a orbitual posted on the National Commodities & Derivatives Exchange (NCDEX) web site, the additional allowance will be essential on all alive declarations from Friday.

The development assumes significance as frequent alterations in regulative averages admonish traders from involvement. A robust business deal enviornment expects supported policy without frequent tweaking .

A trader told that the aim of this extra margin is to cut down excitability in pepper price, where plungers fear price handling in the commodity.

Pepper for near-month pitch on NCDEX has shot up 41 per cent since Feb 16, to trade in presently at Rs 43,025 a quintal from Rs 30,555 a quintal.

The commodity marketplaces regulator had in Feb removed particular margins of 10 per cent (including five per cent of hard cash margins) on all long side contracts effective Feb 21.

With this step up, entire leeways on all farseeing position pepper declarations work out to 20.43 per cent from the existing 10.43 percent.

The regulator has also raised a 15 percent particular leeway on mentha oil on all buy side declarations from the existing 19.64 per cent to 34.64 per cent now. Earlier, only a 10 percent particular leeway was applicable. With the newly released step up, the overall extra margin has tided to 25 percent.

Prices of mentha oil have startled 55 per cent since Feb 16, to trade in presently at Rs 2,467 a kilogram from Rs 1,595 a kilogram.

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