Mumbai, May 23: The ripples in the stock market are being felt in the commodities market as well.

In a proactive measure to reduce volatility, MCX has imposed special margins and additional special margins on commodity contracts.

Additional and special margins have been slapped on aluminium, brent crude oil, crude oil, copper, gold, gold mini, gold HNI, silver, silver HNI, silver mini and zinc contracts. In addition, MCX has imposed a special margin on cumin seed and mentha oil.

An additional margin of 5 per cent has been imposed on members having net short positions in their account as well as in their clients account in all contracts of aluminium, copper, silver, silver mini, silver HNI and zinc. The additional margin is over and above the initial margin and special margin, if any, on aluminium, copper, silver and zinc.

“The prices in the commodities market, including the base metals and precious metals, have risen sharply in recent times. However, last week saw the prices moving down based on which people had started taking short positions in the market expecting further downfall,” said Sunil Ramrakhiani, head, IL&FS Investsmart Commodities.

The exchange has increased the margins to cut excessive speculation and clamp down on panic selling, Ramrakhiani said.

The above margin was calculated at the end of the trading hours on Monday and would be blocked from the available deposits of the member. Such reduced deposit is considered for the purpose of trading with effect from today. These additional special margin and special margin on commodity futures contracts would be applicable until further notice.

Asked as to whether the moves were in response to the meltdown on bourses, Ramrakhiani said, “All major markets, including stock and commodities markets, have been witnessing profit booking.”