MCX does away with large-lot metal contract following Sebi directive

All contracts to be in lot size of one tonne starting January 2020; Exchange also awaits regulator's nod to launch index-based derivatives

The Multi Commodities Exchange has decided to introduce uniform delivery lots across all its metal and energy contracts, following a circular by the regulator, Securities and Exchange Board of India, to this effect.

Accordingly the exchange had de-listed all copper and nickel contracts, save those of one tonne. From January, new contracts in Zinc, aluminium and lead will only be in lot sizes of one tonne. At present, the nickel contract has a lot size of 1.5 tonnes and while copper is traded in a lot size of 2.5 tonnes.

The move is aimed at ensuring all speculative bets are