NCDEX launching coal futures

Mumbai: The National Commodity and Derivatives Exchange Ltd (NCDEX), will launch trading in thermal coal futures from 10 September, it said in a release.

''The first set of contracts in thermal coal would be launched on 10 September,'' NCDEX said in the release.

The contracts would initially be for October, November and December and subsequent contracts would be launched next year.

Trading and delivery units are fixed at 100 tonnes each, it said, adding that the main delivery centre would be Nagpur, Maharashtra.

Daily price fluctuation limit is set at six per cent.

''The seller would be required to give their intention at least five trading days prior to the expiry of the contracts,'' it said, adding, if the buyer with outstanding positions at maturity or a seller, who has agreed to deliver, fails to meet the obligation, he would have to pay penalty fixed by the commodity market regulator.

Rival Multi-Commodity Exchange of India is also likely to launch thermal coal futures in later part of the year, reports quoting its chief executive, Joseph Massey said.