Seven regional commexes' recognition lapsed, audit pending: FMC

Recognition of Indore-based National Board of Trade and Bikaner Commodity Exchange lapsed in June this year

Of the total 16 regional commodity exchanges, recognition of seven bourses has lapsed, according to a report by sector regulator Forward Markets Commission.

Moreover, the audit of these seven commodity exchanges is still pending, the report said.

According to the report, recognition of Indore-based National Board of Trade (NBoT) and Bikaner Commodity Exchange lapsed in June this year.

The recognition of Muzaffarnagar-based Vijay Beopar Chamber expired in March 2014, while that of Haryana Commodities and Meerut Agro Commodities Exchange lapsed in 2012.

Recognition of Central India Commercial Exchange and Rajdhani Oil and Oilseeds Exchange lapsed in 2013.

The recognition of Muzaffarnagar-based Vijay Beopar Chamber expired in March 2014, while that of Bikaner Commodity Exchange and Indore-based National Board of Trade (NBoT) in June this year, it added.

According to FMC, the audit inspection of these seven exchanges is pending as on December 1 this year.

Some bourses are yet to comply with regulatory directions, FMC said, adding that it is also awaiting responses from some exchanges on the audit report.

There are total 16 regional bourses in the country and only three bourses are active at present.

The three active bourses -- Rajkot Commodity Exchange, Hapur-based Chamber of Commerce and Kochi-based India Pepper and Spice Trade Association -- generated a combined turnover of Rs 631 crore in the first fortnight of this month.

The regional bourses offer trading in one or two commodities. The regulator is focusing on strengthening regional exchanges.

Besides regional bourses, there are six national level commodity exchanges in the country.