According to the directives of the
Forward Markets Commission, National Commodity & Derivatives
Exchange Limited (NCDEX) revised the policy on Daily Price Limit (DPL)
of futures contracts in agricultural commodities as under:
1.In case of agricultural commodities’ futures contracts, the DPL shall be (+/-) 4%.
2. If 4% DPL is hit on a day, no trading
shall be allowed beyond 4%. However, trading will continue within (+/-)
4% DPL on that day.
3. If contract closes at 4%, then on the
subsequent day, the DPL shall be (+/-) 4%, and if it is hit, the DPL
shall be further relaxed by 2% with a cooling off period of 15 minutes
in between. If 4+2% DPL is also hit, no trading shall be allowed beyond
6%. However, trading will continue within (+/-) 6% DPL on that day.
4. If contract closes at 6%, then on the
subsequent day/s, the DPL shall be 4% and if it is hit, the DPL shall be
further relaxed by 2% with a cooling off period of 15 minutes in
between.
5. Once the contract closes below 4+2%
DPL i.e. below 6% on the subsequent day/s then DPL on following day/s
shall be reset to (+/-) 4% as per para ‘1’ above.
6. The above policy shall be applicable
for all the contracts of the same underlying commodity i.e. if the DPL
is hit only in one of the running futures contracts, then the above
policy will be applicable in all running expiries of all the underlying
contracts of the same commodity, e.g. if DPL has been hit in Chana
(10MT) futures contracts, the policy shall be applicable in Chana (10MT)
and Chana (2MT) futures contracts.
7. Trading shall not be allowed during the cooling off period in agricultural futures contracts.
8. The guidelines currently applicable
for the daily price limit on the launch (first) day of new contract
shall continue to be as per the circular no. NCDEX/RISK- 027/2011/284
dated September 15, 2011.
This policy would be effective from the beginning of trading day of January 01,2015.