ACE Derivatives and Commodity Exchange gets permanent recognition

India has accorded permanent recognition to Kotak Mahindra Bank promoted ACE Derivatives and Commodity Exchange as a national level commodity bourse status, according to a release by the bank. ACE Derivatives and Commodity Exchange was formerly known as Ahmedabad Commodity Exchange and was a regional operator primarily trading in castor.

The exchange becomes the fifth national commodity bourse in the country after National Commodity and Derivatives Exchange (NCDEX), Multi-Commodity Exchange (MCX), National Multi-Commodity Exchange and Indian Commodity Exchange.

India currently has 21 commodity bourses in all.

Futures trading in commodities was allowed in 2003 and India has since been one of the fastest growing commodity futures markets with a combined turnover of Rs77.65 trillion in 2009/10 fiscal year ending March.

Turnover at Indian commodity bourses was up 58.89 per cent to Rs33.72 trillion in the first four months of 2010/11 fiscal.

ACE Derivatives and Commodity Exchange Limited was granted permanent recognition on 10 August under the provisions of the Forwards Contract (Regulation) Act. According to the statement this is for the first time that a regional exchange has been licensed to upgrade into a multi commodity exchange.