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TMI BlogPosition Limits for Commodity Derivatives, clubbing of open positions, penalties for violation of position limitsX X X X Extracts X X X X X X X X Extracts X X X X ..... position limits and also to prescribe numerical position limits for all commodities which are presently being traded on the Commodity Derivatives Exchanges. 3. General Norms for Position Limits in Commodity Derivatives: The following norms shall be applicable to the Agricultural as well as Non-Agricultural commodity derivatives at commodity level: 3.1. Numerical value of overall client level open position limits, shall be applicable for each commodity as are provided in table given in Annexure- A to this circular. 3.2. The Exchanges, however, in their own judgment, may prescribe limits lower than what is prescribed by SEBI by giving advance notice to the market under intimation to SEBI. 3.3. For the purpose of position limits, norms applicable on client level positions shall also be applicable to the proprietary positions of trading members and while calculating member s open positions, his proprietary positions shall be treated and computed like a client s positions. 3.4. For the purpose of calculating overall position of a member, the overall position of its all clients (as determined in Clause 3.1 or 4.1 below) shall be added without netting off among themse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inistry of Agriculture/ Institutions/Agencies/ other Departments of Central and State Government, as may be appropriate. 6. Clubbing of Open Positions: While calculating open positions for the purpose of position limits, Exchanges shall take suitable measures for clubbing of open positions of clients/members who may be acting in concert to circumvent the norms of position limits. The broad guidelines for clubbing of open positions are provided in Annexure- B to the circular. 7. Monitoring of position limits: Exchanges shall monitor the open position on a real time basis, and shall endeavour that no client or member breaches the open position limits 'at end of the day' as well as 'during intra-day trading'. Penalty shall be levied on those breaching the position limits at end of the day as well as during intra-day trading as provided in Annexure-C to this circular. 8. The provisions of this circular shall come into effect from September 29, 2016 in supersession of all directives issued by erstwhile FMC with regard to matters related to Position Limits, clubbing of open positions, penalties for violation of position limits. 9. The Exchanges are advised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jeera MT 1,000 15. Kapas MT 25,000 16. Maize MT 20,000 17. Mentha Oil MT 500 18. Pepper MT 900 19. Rapeseed-MustardSeed MT 30,000 20. Raw Jute MT 8,000 21. Red Chilli MT 2,500 22. Refined Soy Oil MT 35,000 23. Rubber MT 4,000 24. Sacking Bales 3,000 25. Soy Bean MT 60,000 26. Sugar MT 20,000 27. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more partnership firms and/or being directors in one or more companies and/or being kartas of HUFs are also trustees in one or more trusts, the total open position of a. the person as individual operator, b. the firm or firms in which they are partners; c. the company or companies in which they are directors; d. the HUFs in which they are Kartas; and e. the trust or trusts in which they are trustees, taken together shall not exceed the limit as mentioned above. Provided that, if at any time more deliveries than one are running in the same commodity, the above limit shall apply to the combined open position of the member or the non-member, as the case may be, in all such deliveries running concurrently. 4. Open position of a member shall be the total of the open position acquired by him by trading through or with other member and by appropriating the business of his clients(collectively for all clients). 5. The open position of a non-member shall be the total of the open position acquired by him trading through or with one or more members. B. Exemptions from Clubbing: 1. In the agriculture marketing set up of the rural India, co-operative societie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice x number of days such violation continued x 2% (0.02) or ₹ 10,000/- whichever is higher. b. Where the violation is up to 2% of the prescribed limit(s) Limit exceeded x Closing price x number of days such violation continued x 2% (0.02) or ₹ 10,000/- whichever is lower. c. The member has to ensure reduction in position and to bring it within the prescribed limit(s) by the next trading day after the day of violation. In case such violation continues, the Exchange would square-off the excess position without any further notice to the member by putting the orders on behalf of the member in that client code and will not be responsible for the consequences of such action 2. In case, the instance at 1 (a) above is observed for more than 3 times in a month across the market, the Exchange would suspend the concerned member for a period of one week. For instances at 1 (b) above, the Exchange may devise its norms to deal with habitual defaulters. 3. Further, in case repeated violations of such nature are observed by SEBI, SEBI may consider action against the concerned Exchange. 4. The monetary penalty as stated above, will be credited to the Investor Protecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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