Delivery on NCDEX doubles in May

The leading commodity exchange NCDEX today said it has facilitated delivery of 52,457 tonne goods for the May 2016 expiry contracts against 29,293 tonnes in April for the same.
Average total turnover for the month of May 2016 was Rs 2,704.04 crore. The spurt in delivery shows the depth in trade through future platform, and helps in convergence of spot market, National Commodity and Derivative Exchange (NCDEX) said in a statement here.
The average open interest for the month stood at Rs 5,080.86 crore. The agri segment registered monthly total volume to the tune of Rs 59,416.28 crore. The top three commodities were refined soya oil, rapeseed mustard seed and soyabean.

The total traded volume for refined soya oil was Rs 15,447.45 crore with over 3.37 per cent month-on-month rise, rapeseed mustard seed was Rs 8,436.73 crore with over 29.40 per cent m-o-m fall and for soyabean was Rs 8,190.40 crore with over 12.61 per cent m-o-m fall.
The exchange claims that it has strengthened the risk management and surveillance framework by introducing a concentration margin policy -- a mechanism to minimise non-fulfillment of a settlement obligation by a member -- asking depositors to certify beneficial ownership of the stocks being deposited in exchange-approved warehouses and imposition of pre-expiry margin 11 days before expiry.

The exchange is working towards having more stringent KYC processes for clients and members, the statement said.
It is using learning from the castor episode and adopting best practices from other exchanges and the SEBI's model by-laws on surveillance to ensure a more robust market platform so that similar attempts are dealt with in an effective manner, it said.