Mock Trade In Pepper Futures Set To Begin

Mock trading in pepper futures will begin at Kochi later this month as a first step towards operationalisation of the International Pepper Futures Exchange (IPFE) being set up there. Commercial banks as well as prospective traders have shown keen interest in ensuring early beginning of futures trading in pepper.

The progress of work connected with the setting up of the exchange was reviewed yesterday at the meeting of the steering committee constituted for this purpose. The newly appointed consumer affairs secretary N N Mukerjee presided over it.

The committee was told that Rs 50 lakh towards equity capital of the first commodity clearing corporation of India had been collected from the members who have enrolled themselves for trading at the international pepper futures exchange.

 

The commercial banks, which are being requested to participate in the equity of the clearing corporation, are said to have shown keen interest. They are in the process of sending their applications to the Reserve Banks department of banking operations and development for permission to contribute to this equity.

Commercial banks are also being invited to the mock trading. The objective is to familiarise them with trading and clearing practices.

The International Pepper Community, Jakarta, which has been associated with the project since its inception, is organising a workshop at Kochi on July 7-8 on the operation of the pepper exchange. Potential traders, banks and other institutions will be invited to participate in it.