Date:16/07/2004 URL: http://www.thehindubusinessline.com/2004/07/16/stories/2004071600681200.htm

Back NMCE members to get PNB guarantees

Our Bureau

Mumbai , July 15

PUNJAB National Bank (PNB) has issued guidelines to its offices and branches to issue bank guarantees in lieu of security deposit to the members of National Multi-Commodity Exchange of India (NMCE), according to an exchange release.

This facility would now enable the NMCE members to increase their exposure limits on the exchange.

Mr Kailash Gupta, Managing Director of NMCE, said in a statement that the bank guarantees would increase liquidity in the commodity market and result in greater trading volumes in the long run.

He added that the number of members on the exchange was likely to increase as a result of the move.

NMCE had recorded a turnover of Rs 47,372 crore in the financial year ending March 31 — an average of Rs 158 crore per day.

In the same period, the exchange added 32 commodities taking the total number of commodities available for futures trading to 56.