The Forward Markets Commission (FMC) has suggested a few changes in the bylaws drawn up for the proposed domestic coffee futures exchange in Bangalore. A new set of norms is likely to be submitted to the FMC next week.
"We submitted our proposals with the bylaws for starting the exchange last week but the FMC has suggested certain alterations. We will be submitting the changed bylaws next week," exchange official Ashwin Shah said.
The FMC approval for commissioning the exchange was expected in two weeks and the futures could start functioning sometime towards the end of February, he told PTI in a telephonic interview from Bangalore.
FMC chairman A Agarwal, when asked about the exchange, said that permission for the exchange was a formality if rules and regulations for it were found to be in place.
The board of directors of the Coffee Futures Exchange of India (Cofei), a company incorporated last month to take care of the trading, met in Bangalore on Tuesday to approve the changes suggested by FMC.
The coffee exchange was to have begun operations this month but it has been delayed in view of the time consumed for formulating the bylaws.
In order to ensure that the exchange functions as early as possible, Cofei was going ahead with making other arrangements even as it was to submit the new set of regulations, Shah said.
"We have formed three committees now to go ahead with other jobs. While one committee will look into the aspect of setting up infrastructure, the other will recruit manpower and the third will accept membership," he said.
