FMC imposes stiffer norms on maize trade

The Forward Markets Commission (FMC) has tightened the regulatory measures in futures trading of maize to check the speculative tendencies in the commodity.

The commodities market regulator also said that it has not found any evidence of stock-scam accused broker Ketan Parekh's involvement in manipulation of maize futures.

"We have already submitted the report to the government. We have found no evidence of Ketan Parekh's involvement in maize futures trading," said FMC Chairman Sundareshan.

The client-level position in trading of maize has been reduced from 15,000 tonne to 10,000 tonne. The near-month position limit has been fixed at 2,000 tonne per client. So far, there was no near-month position limit for maize.

The revised position limits for the near month and all the other months combined would be implemented with effect from the beginning of the day on December 21, 2006, for the contracts expiring in January 2007 and thereafter, said Rajeev Agarwal, an FMC member.

Further, the minimum margin on long positions has been increased to 20 per cent from the earlier 11 per cent. The new margin would be effective from December 2.