SEBI's peak margin rule hits commodity futures - The Hindu B

SEBI's peak margin rule hits commodity futures - The Hindu BusinessLine


SEBI’s peak margin rule hits commodity futures
With high transaction cost adding to woes, traders face a double whammy
Leverage is the fuel that keeps speculators going and any clampdown on leverage will result in lower speculative activity. This is the trend playing out in the commodity futures market with the stage-wise implementation of SEBI’s peak margin rules since December last year.
Data from the Multi Commodity Exchange indicate that since November 2020, the average daily turnover (ADT) in commodities futures was down 23 per cent till April 30. March 2021 saw the sharpest fall of 28 per cent month-on-month, thanks to the 50 per cent peak margin requirement that kicked in then.

Related Keywords

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