Eica Permits Trading In Ntsd Contracts

Trading in non-transferable specific delivery (NTSD) contracts of certain types, samples, stamped bales and/or descriptions in all the varieties of cotton grown during the cotton season of 1997-98 has been permitted.

The decision was taken by the board of the East India Cotton Association limited (EICA) in concurrence with the Forward Market Commission (FMC), an EICA release said.

Trading in NTSD contracts would be allowed with effect from February 17, 1998, providing for delivery in the month not later than the fifth month following the month into which the contract was entered.

If the contract is entered into in February, 1998, it shall result in actual delivery on or before July 31, 1998.

 

Trading in NTSD would be subject to terms and conditions stipulated in the notice while the delivery period would not be extended beyond permitted duration of the contracts, the release added.