 "NCDEX imposes 75% margin on chana bulls")
The National Commodity and Derivatives Exchange (NCDEX) has imposed heavy margins on forward trades in chana (chickpea), effective from Monday, to curb excessive speculation in its price.
At present, chana attracts a 9.8% initial margin, a 5% additional margin and 20% special margin on the long side. From Monday, the special margin has been increased to 45%. There is also an expiry margin applicable in near-month contracts.
With this, the total margin in November chana contracts will be 75% on long positions from Monday. From there, a daily 3% more till contract expiry, taking the total margin on the final day of the contract to 100%.
The November 2015, December 2015 and January 2016 expiry contracts are covered by the special margin.
Prices of all pulses had surged in the past two months, with a relatively poor monsoon impacting the crop prospects, and at a time when most global producers face a similar situation. Chana is the only pulses item traded on a futures exchange.
At present, chana attracts a 9.8% initial margin, a 5% additional margin and 20% special margin on the long side. From Monday, the special margin has been increased to 45%. There is also an expiry margin applicable in near-month contracts.
With this, the total margin in November chana contracts will be 75% on long positions from Monday. From there, a daily 3% more till contract expiry, taking the total margin on the final day of the contract to 100%.
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The market was expecting some measures to curb prices, with the recent volatility in this regard. Ajay Kedia, director, Kedia Commodities, said: "Despite several measures, the prices were not coming under control and today's move is in that direction."
The November 2015, December 2015 and January 2016 expiry contracts are covered by the special margin.
Prices of all pulses had surged in the past two months, with a relatively poor monsoon impacting the crop prospects, and at a time when most global producers face a similar situation. Chana is the only pulses item traded on a futures exchange.