How does the SEBI circular clubbing of open positions in MCX affect me?

I read the SEBI circular which says: “Exchanges shall monitor the open position on real-time basis & shall endeavor that no client or member breaches the open position limits at end of the day”

@venu / @basu can you please explain how does this affect me as a commodity trader? because i have received the email from my broker saying that by default my MCX open positions will be clubbed, so what should I do now??


Link for the circular.

Two or more related/connected clients(Individual/Corporate/Partnership/HUF) shouldn’t hold more than the client limit which is set by the exchange and the client limit can be checked in the circular (Annexure A, Page no 4).

Let’s take a scenario, you have opened multiple (Individual/Corporate/Partnership/HUF) commodity accounts with the different brokers/same broker, and initiated the trades. Now exchange will consider all the open positions taken in multiple accounts and these open positions will be clubbed together.

If you have positions in multiple accounts by default, these positions will be considered for calculating client limit.
Now if you wish to not to club, you have to give the written consent to broker saying not to club the positions and in turn the broker forwards the request to exchange.


@basu, the other broker is not asking or informing about clubbing?

@gero by default, clubbed, either your broker informs or not. Even I feel as a trader this might be an added info while trading commodity markets.