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Informist, Tuesday, Oct. 15, 2024

 

MUMBAI – The National Commodity and Derivatives Exchange Ltd. announced the relaunch of unprocessed whole raw yellow peas futures contracts. Futures contracts of yellow peas will be available for trading on the NCDEX from Wednesday, the domestic bourse said in a circular late on Monday. 

 

Contracts expiring in the months of November, December, January, and February will be launched the same day. The open interest threshold of the yellow pea futures contract is 120,500 tonnes and the contract symbol is YELLOWP, according to the circular. The exchange withdrew yellow pea futures contracts earlier due to liquidity challenges. 

 

"Upon expiry of the contracts all the outstanding open positions shall result in compulsory delivery," according to the circular. On Jul. 19, Informist had exclusively reported quoting two unnamed officials that the Securities and Exchange Board of India had approved the relaunch of yellow pea futures contracts on the NCDEX. The report also specified that the contract would be on a compulsory delivery basis and won't have a cash-settlement option.

 

Contracts will be opened on the first trading day of the month, and if it is a non-trading day, contracts will open on the next trading day, according to the circular. The expiry date for a contract is the 20th day of the delivery month, it added. 

 

The trading unit and delivery unit is 5 tonnes, and the maximum order size is 500 tonnes. The tick size is INR 1, and the contracts will be quoted in rupees per 100 kilograms, the bourse said. Moisture required in the seed is 12%, but the seed with moisture upto 14% is also acceptable, the exchange said. However, moisture in the pulse above 14% will be rejected, it said. 

 

"Once the price limit of 4% (+/-) is reached, then after a period of 15 minutes this limit shall be increased further by 2%," the circular said. The trading should be permitted during the 15-minute period within the 4% limit. After the daily price limit is enhanced, trade will be permitted throughout the day within the enhanced total daily price limit of 6%, it added. 

Member-wise position limit is set at 120,000 tonnes or 15% of the market-wide open interest in the commodity, whichever is higher. For clients, it is set at 12,000 tonnes.  End

 

Reported by J. Navya Sruthi

Edited by Manisha Baxla

 

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