National Multi-Commodity Exchange of India (NMCE) has launched ‘Rubber Mini Contract' in order to lure small producers, traders and hedgers.
The main feature of this contract is the lot size for trading and delivery, which is 100 kg. This is going to be beneficial for small and marginal producers, for hedging their produce.
The delivery will take place only in case of matching intentions between the buyers and the sellers. Rest of the open positions will be closed through cash settlement.
The settlement price would be the same as that of the main rubber contract that is settled through compulsory physical delivery.