What impact does the SEBI circular on MCX clubbing of open positions have on me?

The position limitations for commodity derivative contracts are set out in SEBI circular SEBI/HO/CDMRD/DMP/CIR/P/2016/96, dated September 27, 2016. As a result, two or more related/connected clients (individuals, corporations, and HUFs) should not maintain positions in excess of the Exchange's specified limit. The client limits are outlined in the circular's Annexure A (Pg-4) section.

If you have numerous (Individual/Corporate/Partnership/HUF, etc.) commodity accounts with different/same brokers and hold positions, these positions will be combined to calculate the contract's overall open position limit. A penalty will be imposed if this exceeds the Exchange's specified limit.

By default, the Exchange will club all positions; however, if you do not want the positions to be clubbed, please provide us with written consent outlining grounds for not clubbing the positions, which we will transmit to the Exchange.