Commodity markets regulator Forward Markets Commission (FMC) has reduced margins by 50 per cent on all contracts of soyabean and mustard seeds from Friday.

In a circular, the Commission said that special margins of 10 per cent (in cash) on the long side of all existing contracts of soyabean and rapeseed/mustard (R/M) seeds have been reduced to 5 per cent.

“The structure of special margin will come into effect from the beginning of trading day June 8, in all the running contracts and yet-to-be launched contracts,” the circular added.

In view of the recent trends in the prices of soyabean and R/M seed contracts, the Commission had decided to revise the existing rate of special margin, Forward Markets Commission said.

Margin is a deposit that is required to be given by traders before entering into a pact to buy or sell the commodity at future date.

Keywords: mustard seed

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