The country's top two commodity exchanges multi-commodity exchange (MCX) and National Commodity & Derivatives Exchange (NCDEX) will raise the open position limit for crude palm oil (CPO) futures from April 1 in an effort to increase trading volume.
The open position limit is the maximum number of futures contracts that one can hold for trading.
The exchanges have doubled the position limit for members (brokers) to 60,000 tonnes for all contracts from 30,000 tonnes and for clients (individual trader) to 20,000 tonnes from 10,000 tonnes, according to separate circulars issued by the MCX and NCDEX.
For the near-month contract, the exchanges have increased their position limits for members to 18,000 tonnes from 10,000 tonnes, and for clients to 6,000 tonnes from 3,000 tonnes.
The revised limits will be effective from April 1, the circulars said.
NCDEX said the CPO futures contracts at its platform will henceforth expire on the last trading day of the month. Earlier, the contracts matured on the 20th of the month.
Currently, the future rate of CPO for March delivery stands at Rs 369.10 per kg, while that for May at Rs 374 per kg at the MCX counter.
