NCDEX to raise cooling-off period by 15 minutes

MUMBAI: In line with a Forward Markets Commission (FMC) directive to the commodity exchanges, NCDEX will increase the cooling off period of wheat from the existing 15 minutes to 30 minutes after the price hits its first limit of plus-minus 4% with immediate effect.

“This will pre-empt any possibility of excessive speculative activity in the commodity,” said Anupam Mishra, director of FMC. While the futures price of the active month (July) contract is priced at Rs 830 levels on NCDEX, the spot market price stands at Rs 940 levels.

The move may have emanated out of a desire to curb excess volatility, seen in mentha oil and certain narrow commodities, as wheat is a highly sensitive commodity, feels SI Kannan, a commodity analyst with Sharekhan. “Currently, there is no rigging or manipulation going on in wheat and the retail investor can safely trade in it.”

Also, an additional margin of 5% will be collected on client level net long and short open positions on all contracts of chana as of end of day positions with effect from July 14. The additional margin will be collected in cash during normal pay-in time daily.

Any additional/special margins existing or hereafter imposed pursuant to the directive of FMC on contracts of urad and tur will henceforth be payable in cash during normal pay-in time daily.

Thus, the existing additional margin of 10% being levied in urad on long side positions will now be collected in cash daily during normal pay-in time with effect from July 17, ‘06 end of the day position.