Penalty for delivery default left unchanged

y-out of the expired contract, if the said spot price is higher than the FSP. Otherwise this component will be zero.  Normally, when the settlement day comes near, the futures prices, which are generally higher than the spot prices, start converging with the spot prices. But in commodity futures, this was not happening and traders were charging high penalty for it not allowing the futures to converge with the spot prices.  Cases have also been reported of traders trying to jack up prices at the time of settlement. By reducing the penalty, the FMC hopes to help the convergence of futures and spot prices.