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India raises margins on gold futures - regulator

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Reuters MUMBAI

MUMBAI (Reuters) - India, the world's biggest buyer of gold, raised the initial margin on gold futures to 5 percent from 4 percent for domestic traders effective Monday, the market regulator said on Friday.

The Forward Markets Commission's (FMC) move comes after gold prices rose 18 percent to reach a record high earlier this week.

The FMC, which regulates the commodity futures market in India, also imposed an additional 5 percent margin on gold, silver and crude oil futures contracts from Monday.

The Multi Commodity Exchange, where most gold futures trading takes place in India, records a daily volume of 28.8 tonnes on an average.

 

(Reporting by Siddesh Mayenkar; Editing by Frank Jack Daniel)

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First Published: Aug 30 2013 | 11:26 AM IST

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