NCDEX announces close out for suspended castor seed contracts

KOLKATA: National Commodity & Derivatives Exchange ( NCDEX) on Monday took a definitive step in the interest of market participants in castor seed contracts. The exchange had suspended the running castor seed contracts on January 27, 2016 to maintain market equilibrium, safeguard market integrity and in the general interest of commodities market. Further to setting up an Investor Services Cell for redressing grievances of market participants, the Exchange today announced a close out for the suspended castor seed contracts.

“SEBI has been very strongly driving investor protection and upholding the rights of investors. NCDEX continues to echo the same philosophy and has therefore declared the close out to redress the grievances of participants affected by the suspension of the castor seed contracts." said Samir Shah, MD & CEO, NCDEX

The close out price has been computed in a transparent and fair manner, taking into account the Agmarknet prices prevailing in Deesa, Kadi, Palanpur and Patan markets from January 28, 2016 till February 19, 2016, the cost of transportation, storage, brokerage and other incidental expenses.

Claims of the registered Members and constituents of the Exchange (other than the defaulting members), who had net short positions in the Castor seed contracts traded on the Exchange platform and also correspondingly held valid deliverable stocks in the warehouses approved by the Exchange, as on January 27, 2016, shall be admissible as per the terms of the close-out. The admissible quantity of stocks shall be the lower of Net Short Position and the actual quantity of physical stocks held in Exchange approved warehouses as reflected in their respective COMTRACK® beneficiary accounts as on January 27, 2016.