FMC seeks resumption of forward trading in banned items
02 Jan 2010
Commodity market regulator Forward Markets Commission said on Friday that commodity bourses can achieve a turnover of Rs80,00,000 crore if resumption of forward trading in rice, urad, tur and sugar, along with launch of options and indices, are allowed.
Futures trading in the four commodities is banned, and the launch of index and option requires parliament to pass the forward contracts (regulation) amendment (FCRA) bill, which will also put the Forward Markets Commission (FMC) at par with stock market regulator Securities and Exchange Board of India.
"We hope to see the passage of FCRA Bill this year and also want to bring back all banned commodities on the futures platform to achieve the turnover target of Rs80,00,000 crore in 2010," agency reports quoted FMC chairman B C Khatua as saying.
The turnover of the 24 commodity exchanges in the country was over Rs67,00,000 crore till 15 December 2009.
The FCRA, which has provisions allowing FMC to launch options and indices in commodities, was introduced in Lok Sabha in 2008. However, it could not be passed before the dissolution of the 14th Lok Sabha, and, therefore, lapsed.
Commodity broking firms and analysts share the view that the government should not further delay the passage of the bill in 2010. They say reforms will help speedy growth of the seven-year old sector.
Last month, the parliamentary panel on food, consumer affairs and public distribution suggested that the government reintroduced the bill in parliament to strengthen the regulatory framework and confer autonomy to the regulator.
