Wednesday 6 November 2013

FMC removes additional 5% margin on the future contracts of gold and silver

Commodity market regulator, the Forward Markets Commission (FMC) has removed an additional 5 percent margin on the future contracts of gold and silver due to less volatility in prices of these commodities. The regulator has also removed additional margins from crude oil, brent crude oil, natural gas, aluminium, copper, lead, nickel and zinc traded on the six national commodity exchanges till further orders.

FMC said in a circular that since the price volatility has subdued in the recent past, the Commission has decided to remove the additional margin of 5%. The removal of margins on these commodities will be effective from November 7.

The additional margin on future contracts of gold, silver, brent crude oil, crude oil and natural gas was imposed on August 29 this year, a day after gold touched the all time high of Rs 34,500 per ten grams in the intraday trade, while on base metals namely aluminium, copper, lead, nickel and zinc, it was imposed on September 3 this year to tackle volatility in the market.

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