Forward Markets Commission (FMC) hiked the margins on all gold contracts) traded at the National Exchanges

In the light of the recent volatility observed in the prices of Gold, the Commission has decided to raise the initial margin in respect of Gold contracts (all gold contracts) traded at the National Exchanges. Therefore, in partial modification to this office letter No.6/1/2007-MKT-II(VOL-II) dated 24th December 2007, the Exchanges are directed to impose initial margin on Gold contracts (all gold contracts) at the rate of 5% of the value of the contract or VaR based margin whichever is higher.
2. In view of the current price volatility, the Commission has also decided to impose additional margin of 5% on all the Gold, Silver, Brent Crude Oil, Crude Oil and Natural Gas contracts traded on the National Exchanges till further orders.
3. The above directives may be made effective from 2nd September, 2013. The Exchanges may issue suitable circulars to the members in this regard and compliance reported to the Commission.

Forward Markets Commission (FMC):Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority which is overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt. of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952.