• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mr B.C. Khatua, FMC Chairman.

Our Bureau

Mumbai, Nov. 12 Commodity futures market regulator Forward Markets Commission (FMC) may be in no hurry to allow the setting up of a fourth exchange, especially when a broking firm seeks to promote a nationwide commodity futures exchange.

Last month, the Mumbai-based Indiabulls Financial Services Ltd had announced it would tie up with state-owned MMTC to establish a commodity futures exchange.

Three nationwide exchanges are already operational.

After addressing the media here on the importance of farmers’ groups to benefit from futures trading, on a query from the press, the FMC Chairman, Mr B.C. Khatua, expressed reservation about allowing a broking firm to promote an exchange.

“Apart from our reservations, we are also looking at whether there is need for a fourth national commodity exchange,” he added.

MMTC had sought Commerce Ministry’s approval to hold a minority stake of 26 per cent in the special purpose vehicle to be floated for the new commodity exchange.

The belief that the roll out of the new exchange is likely to be delayed is gaining ground as Mr Khatua asserted that the FMC would like to go into finer details before recommending the proposal.

In fact, the FMC chairman is in favour of regional exchanges getting together to set up a national exchange.

“We have informed the regional exchange of this idea. We would like them to have a single window clearance for final settlement of contracts,” he said.

Most regional exchanges have been facing poor trading volumes for some time.

The situation has worsened after the advent of the three national commodity exchanges, which provide an electronic platform with a pan-India presence.

On allowing foreign direct investments in commodity exchanges, Mr Khatua said the Cabinet Committee on Economic Affairs was likely to take a decision in the next meeting.

More Stories on : Commodity Exchanges | Regulatory Bodies & Rulings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
FMC has reservations on fourth commodity bourse

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line