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BSE launches cotton futures contract on the exchange

19 Feb 2019 Evaluate

After getting SEBI's nod to launch the natural fibre on the commodity derivatives exchange, the Bombay Stock Exchange (BSE) has begun trading in cotton contracts on February 18, 2019. The unit of trading for the cotton contract is 25 bales and the deliveries will be tendered in 100 bales. The quotation for cotton futures is in Rs per bale (of 170 kg). The basic delivery centre for the cotton contracts is Rajkot with additional delivery centres at Aurangabad, Jalgaon Yavatmal in Maharastra and Mundra and Kadi in Gujarat.

With the launch of cotton contracts, the exchange is look forward to gain wider participation from cotton business stakeholders. Recently, it began trading in commodities with gold and silver. It also launched Guarseed and Guargum that has witnessed record turnover and grabbed 36% market share.

The contract start day will be the 1st day of contract launch month and the final trading day will be the last day of contract month. The commodity trading session will be from Monday to Friday from 9.00 am to 9.00 pm. It is a compulsory delivery contract, with the initial margins for the cotton contracts set at minimum 4 per cent or will be based on SPAN, whichever is higher.


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