MCX, the country’s largest commodity exchange, has received SEBI approval for launching Steel Rebar futures.

The date of launch of the contracts will be announced separately, said the exchange. The trading unit will be of 5 tonnes with a base value of one tonne.

The maximum order size would be 200 tonnes and the tick size will be ₹10 per tonne, said the exchange. The price quote (excluding GST) will be ex-warehouse at Raipur district, Chhattisgarh.

The daily price limit is of 4 per cent and once this is reached it will be relaxed to 6 per cent without any cooling-off period in the trade. Once the 6 per cent limit is breached, then after a cooling-off period of 15 minutes, the daily price limit will be relaxed up to 9 per cent.

Also read: SEBI allows futures contract on corporate bond index

In case, price movement in international markets is more than the maximum daily price limit (of 9 per cent), the same may be further relaxed in steps of 3 per cent. The initial margin will be 8 per cent.

Client open position

The maximum individual client open position has been fixed at 1.20 lakh tonnes or 5 per cent of the market wide open position, whichever is higher for all Steel Rebar contracts combined.

For a member collectively for all clients the open position will be 12 lakh tonnes or 20 per cent of the market wide open position, whichever is higher for all Steel Rebar contracts put together.

While the primary delivery centre will be at Raipur, the exchange has provided additional delivery centres at Thane district in Maharashtra, Palwal district in Haryana, Chennai district in Tamil Nadu and Durgapur district in West Bengal.

On expiry of the contract, all the open positions will be marked for compulsory staggered delivery.

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