Date:10/01/2007 URL: http://www.thehindu.com/2007/01/10/stories/2007011011541800.htm

Business

50 p.c. margin on commodity exposure

MUMBAI: The Reserve Bank of India on Tuesday asked banks to maintain the margin requirements for exposure to commodity markets, just as in the case of stock markets.

An RBI notification said that for exposure in commodity markets, banks would have to maintain a minimum margin of 50 per cent. This included 25 per cent cash margin for guarantees issued by them to commodity brokers. Earlier, the banks were asked to maintain the same margins for guarantees issued by them to share and stock brokers.

Turmeric futures

Meanwhile, the National Commodity and Derivatives Exchange Ltd. (NCDEX) has modified the turmeric futures contract, which will be applicable for all contracts expiring in June and thereafter.

The exchange has added an additional delivery centre at Warangal and has made one more variety deliverable called Desi Cuddapah. — PTI