Date:02/10/2007 URL: http://www.thehindubusinessline.com/2007/10/02/stories/2007100250291400.htm

Back NMCE revises margin in pepper, jeera contracts

Our Bureau

Ahmedabad, Oct. 1 The National Multi-Commodity Exchange (NMCE) today revised margins in pepper and cumin seed (jeera) contracts with effect from commencement of trade on Monday (October 1, 2007), to be collected on real-time basis.

While the initial margin, subject to a minimum margin, remains 7.5 per cent for Value-at-Risk (VaR) for the two commodities, the permissible additional margin will be 5 per cent. The special margin of 6 per cent for the buyers has been removed, it said in a release here. In another development, the Exchange announced reduction of validity period of the Warehouse Receipt (WR) of pepper contracts to six months, instead of nine months as is in vogue now. This will be applicable to all stocks deposited as well as revalidated from October 16, 2007 onwards.

The Warehouse Receipt (WR) would be initially issued with a validity of 90 days (3 months) at the time of deposit, which could be revalidated only once for another 90 days. This would be subjected to a standard deduction of 0.2 per cent at the time of revalidation.