The Forward Markets Commission has levied 10% special margins on soybean and yellow soybean meal on long side contracts for delivery in April 2013.
Effective from Wednesday, the margins would be in the form of cash and for April contract only. The commodity derivatives market regulator levied cash special margins for cooling down prices.
Under the existing specified norms, the FMC is empowered to levy special margins in case the price moves over 20% either side. In this case, however, both soybean and yellow soybean meal prices moved up over 20% since the beginning of the contract.
“Soybean, for example, started its journey at Rs 3,410 a quintal on the contract opening day on November 10, 2012. Now, the oilseed was trading at Rs 4,105 a quintal on Tuesday after hitting the high of Rs 4,156 a quintal on Monday, recording thereby, around 22% upsurge from the top,” said Vedika Narvekar, senior research analyst, Angel Broking.
With this levy, the overall margins would go up to 20%.
