NMCE reduces daily cap to 2 per cent on rubber futures

Ahmedabad, Jun 29 (UNI) The National Multi-Commodity Exchange (NMCE) has reduced the limit on daily price fluctuation in all rubber futures contracts, traded on its terminals to two per cent on either side initially with effect from Monday, July 2.

And if the price hits either upper or lower side again after a break of 15 minutes, the exchange could relax the cap by another two per cent, according to a NMCE release here. Thus, NMCE could now enforce a cap of maximum four per cent on either side, also called upper or lower circuit, as against maximum six per cent earlier, it said.

The changes have been incorporated in pursuance of the regulator Forward Markets Commission (FMC) directive issued today.

NMCE provides the e-platform for futures trading in rubber simultaneously in four series, in lots of one metric tonne (1MT), the prices being quoted in rupee per quintal.

The exchange has an inbuilt real-time price discovery system, backed by the robust and reliable warehouse receipt system of Central Warehouse Corporation (CWC). The physical delivery of the commodity is arranged through CWC warehouse at Cochin / Ernakulam, Kottayam, Calicut, Malapuram and Trichur.

UNI