Implications of Clubbing of Open positions in MCX.


SEBI circular SEBI/HO/CDMRD/DMP/CIR/P/2016/96 dated September 27, 2016, prescribes the position limits for Commodity derivative contracts. Accordingly, two or more related/connected clients (Individuals, Corporates, HUF) should not hold positions in excess of the stipulated limit set by the Exchange. The client limits are as defined under Annexure A (Pg-4) of the circular.


If you have opened multiple (Individual/Corporate/Partnership/HUF etc) Commodity accounts with a different/same broker and hold positions, then these positions will be clubbed to determine the overall open position limit for the contract. If this is in excess of the Exchange stipulated limit, a penalty will be levied.


The Exchange will club all positions by default, in the event that you wish for the positions not to be clubbed, we request you to give us a written consent citing reasons for not clubbing the positions and we shall forward the same to the Exchange. 


Refer this FAQ for more information on the criteria and basis on which the clubbing will be done. Click here for the circular/guidelines from MCX regarding this.