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| Comexes to start futures trading in 4 items today | |
| BS Reporter / Mumbai December 04, 2008, 0:50 IST | |
Commodity exchanges will resume futures trading in natural rubber, soybean oil, potatoes and chickpeas after the government lifted a seven-month old ban.
“The regulator has given permission to all the exchanges to begin trading from tomorrow,” Unupom Kausik, chief business officer at the National Commodity & Derivatives Exchange, said.
The Multi Commodity Exchange of India and the National Commodity & Derivatives Exchange and the National Multi Commodity Exchange can start trading in the four commodities after securing approvals for new contracts, B C Khatua, chairman of the Forward Markets Commission, said on December 1.
National Commodity & Derivatives Exchange and rivals will begin trading four contracts each in the four commodities starting January, Kausik said.
The resumption of trade comes at a time when prices of most of the agriculture commodities have dipped sharply.
Futures contracts of these commodities were suspended to address fears that such trading was contributing to inflation. Later, the suspension was extended for three months till November 30. The suspension order of the regulator mandated re-approval of these contracts after the automatic lapse, in case it was not further extended.
Market players said the contracts will take some time to stabilize as confidence needs to be restored first.
Contracts in the four suspended commodities were quite successful till they were suspended abruptly. In April this year soyoil trading generated a total turnover of around Rs 18,000 crore, while chana, rubber and potato trading was worth over Rs 15,000 crore.
Before suspension, potato and chana was largely traded on MCX while rubber was traded on NMCE. Soyoil generated huge volumes on NCDEX and the Indore-based National Board of Trade (NBoT).
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