Mumbai, June 19
THE total volume of commodity futures trading in the country has reached Rs 1,90,000 crore ($44 billion) during the first two months of the current fiscal from Rs 25,000 crore recorded in the same period last year, showing a significant growth of 800 per cent, Mr S. Sundareshan, Chairman of the Forward Markets Commission (FMC), said.
With the proposed amendment in the Forward Contracts Regulation Act, the FMC will soon be made an autonomous regulator of the commodities futures trading exchanges, he said, at a symposium on `Commodity market - A Pan-India Opportunity' organised by Financial Technologies (India) Ltd and Multi Commodity of India (MCX) held here.
"The FCR Act needs to be amended, for which a draft Bill is ready. It will soon be submitted to the Cabinet for final approval to allow options trading in commodities," he said.
FMC will start a dialogue with all 24 regional commodities futures trading exchanges in the country for their sustainability, he said.
"The Government has permitted futures trading in about 60 commodities, of which liquidity is in less than 10 commodities. Despite this, daily trading volume is about Rs 5,000-6,000 crore. I see there is huge potential for commodity futures trading in the country," Mr Ravi Narain, Managing Director and Chief Executive Officer, National Stock Exchange, said while speaking on "Commodities Market: The New Growth Frontiers."