Circular No: - NMCE/2011-12/0104 Date: - 6-Feb-2012
To,
The Members,
In pursuance to the directions of the Forward Markets Commission (FMC) vide its letter No.6/1/2012- MKT-I dated 10th January, 2011 and in terms of the Bye-Laws, Rules and Regulations of the Exchange the members of the Exchange are hereby informed that the guidelines for clubbing of open position have been further modified as under.
The existing clubbing guidelines have laid down various parameters / criteria for clubbing of outstanding open positions across clients and/or members. However, since it is not feasible to define all parameters / criteria for clubbing of open positions, the Exchange may take suitable measures for clubbing of open positions on the basis of the criteria laid down in the aforesaid guidelines and also such other criteria as PAN Nos, patterns such as “acting in concert” through common ownership and control structures and any other relevant criteria to club open interest that may be observed during the course of regular monitoring and surveillance and may appear to compromise market integrity.
Members and their clients should note the above guidelines and exercise due care in trading on the Exchange platform.
The above guidelines are subject to any further directions from Forward Markets Commission and the Exchange, from time to time.
For and on behalf of
National Multi-Commodity Exchange of India Limited
Dinesh Shukla
Vice President (Market Watch & Surveillance)
