India’s largest commodity exchange – the Multi Commodity Exchange (MCX) has issued a revised list of approved banks for submitting Bank Guarantees (BGs) and Fixed Deposit Receipts (FDRs) towards Initial Security Deposit, Additional Margin and Base Minimum Capital, it said in a circular. The circular has become effective from 25 May 2020. See the list of approved banks below:

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No. | Bank Name

1 Axis Bank Limited
2 Bank of America
3 Bank of Baroda
4 Bank of India
5 Bank of Maharashtra
6 Canara Bank
7 Central Bank of India
8 Citibank N.A.
9 Credit Agricole
10 DBS Bank Limited
11 DCB Bank Limited
12 Federal Bank Limited
13 HDFC Bank Limited (FDR's in electronic Form)
14 ICICI Bank Limited
15 IDBI Bank Limited
16 IDFC FIRST Bank Limited
17 Indian Bank
18 Indian Overseas Bank
19 IndusInd Bank Limited
20 Karur Vyasa Bank Limited
21 Kotak Mahindra Bank Limited
22 Punjab and Sind Bank
23 Punjab National Bank
24 RBL Bank Limited
25 State Bank of India
26 Standard Chartered Bank
27 Tamilnad Mercantile Bank Limited
28 UCO Bank
29 Union Bank Of India

The list has been revised as per the provisions of the Rules, Bye-Laws and Regulations of Multi Commodity Exchange Clearing Corporation Limited (MCXCCL), the MCX circular said.

“The acceptance of the Bank Guarantees (BGs), Fixed Deposit Receipts (FDRs) and Securities of these approved banks shall be subject to the bank-wise and member-wise limits stipulated from time to time. The limit available for each approved bank along-with the member-wise maximum value of BGs, FDRs and Securities that can be given by the bank shall be disseminated by MCXCCL on its website on a daily basis at the end of each trading day,” the circular said.

“The information shall be available on MCXCCL website under the link https://www.mcxccl.com/riskmanagement/collaterals where separate files for the bank-wise and member-wise limits shall be placed. The files shall be available on MCXCCL website w.e.f. Saturday, May 23, 2020,” the circular said.

“Members are advised to check the bank-wise available limits and maximum allowable limits per member from the above files before placing additional collateral deposits in the form of Bank Guarantees, Fixed Deposit Receipts and securities of approved banks. This circular shall be effective from Monday, May 25, 2020,” the circular said.

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MCX offers trading in commodity derivative contracts across varied segments including bullion, industrial metals, energy and agricultural commodities. It is India’s first exchange to offer commodity options contracts. The Exchange, which started operations in November 2003, operates under the regulatory framework of Securities and Exchange Board of India (SEBI).