Date:10/05/2006 URL: http://www.thehindubusinessline.com/2006/05/10/stories/2006051000551300.htm

Back FMC move to cap price fluctuation

Our Bureau

Mumbai , May 9

The Forward Markets Commission has in supercession of its earlier approvals, directed the Multi Commodity Exchange Mumbai, National Commodity & Derivative Exchange Mumbai and National Multi-Commodity Exchange, Ahmedabad to amend their contract designs, so as to reduce the limit on daily price-fluctuation, with immediate effect to 4 per cent initially, and, with the break of 15 minutes, to 2 per cent more in respect of all the contracts.

This includes contracts that are currently traded and permitted but not yet traded.

Following are the commodities that come under the new order: Wheat; rice; maize; sugar; guarseed; guar gum; urad; tur; chana; peas and potato; moong and masur.

The Exchanges have also been advised to broadcast the direction of the Commission and issue suitable circular to the member, according to a press release.