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Mumbai , Sept. 3

THE overall futures trading volumes is likely to reach to Rs 2,00,000 crore during the current financial year, thanks to various reform measures implemented by commodity exchanges, Mr Sharad Yadav, Minister for Consumer Affairs, Food and Public Distribution, has said.

Futures trading volume, in terms of value, increased from Rs 345 billion in 2001-02 to Rs 1.02 trillion or Rs 1,00,000 crore in 2002-03, he said addressing the Golden Jubilee celebration of Forward Markets Commission and third national conference of commodity exchange.

``Though the base has been rather narrow, annual growth by the tune of 200-300 per cent is impressive by any yardstick. The performance in the first quarter of current financial year is quite encouraging. Volumes have increased to 126 lakh tonnes in April-June 2003 from about 76 lakh tonnes compared to the same period last year. The major increment has been accounted by one or two exchanges and a few commodity,'' Mr Yadav said.

Modernisation of the commodity exchanges is critical in the context of opening up of the entire set of commodities for futures trading. In fact, all the best practices suggested for implementation in the exchanges such as online trading, daily mark to market margin, time stamping. Professional, independent directors, computerised operations, electronic trading, modern settlement and clearing practices were all with the purpose of making futures trading at par with the rest of the world, he said.

The value of trading tripled in 2002-03 from that in 2001-02 and crossed Rs 1 trillion. Given the trend, this might double in the current fiscal year, Mr Wajahat Habibullah, Secretary, Department of Consumer Affairs, said.

``Task force on convergence of securities and commodities derivatives markets has been set up under my chairmanship. We have sought independent inputs by means of a study awarded to the IIM Lucknow on the issue of restructuring of FMC. The report has been finalised by the IIM and is in postal transit. All this together will provide a structure for the emerging market regulator and a clear picture will be seen in the next 2-3 months," he added.

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Futures volume set to top Rs 2,00,000 cr

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