Though the exchange is yet to be formally inaugurated, all trading at the bourse, which commenced in June last, are in real terms. "The RBI is expected to give permission to the banks to become ICMs any time. Once that happens, we will go ahead with formal inauguration of our exchange," Coffee Futures Exchange of India (COFEI) president Ashwin Shah said.

COFEI board of directors had cleared ABN Amro and Vysya Bank to be ICMs of the exchange. The banks had submitted their application about six months ago but the RBI is yet to take any decision.

RBI officials, when contacted, refused to say anything on the issue. "Participation of ICMs will improve trade turnover at the exchange. Companies like Nestle and Hindustan Lever are expected to take part in the trade in abigger way once the ICMs issue is cleared," Shah said.

Both Nestle and Lever have become members and are awaiting the trade turnover to pick up at the exchange, where currently 100 lots of 600 kg each are transacted. ICMs are required for the exchange to clear sales of trading members as they get the required guarantee before the clearance. Currently, transactions are cleared by clearance-cum-trading members of the exchange.

A Nestle official, however, said his company's participation in the exchange would be prominent once the trade turnover picks up. ICMs are also necessary to improve the bourse's turnover and liquidity. Lack of ICMs at the bourse has led to trade at the exchange being restricted for just an hour, thereby resulting in the meagre turnover.

On the other hand, the exchange has got its software ready to start online trading. The coffee bourse has entered into an agreement with the Bangalore Stock Exchange to use the latter's infrastructure for trading.

During the second phase, theexchange plans to expand to coffee-growing areas. It is likely to begin soon after formal trading begins. The coffee exchange has over 250 ordinary, 65 trading and six trading-cum-clearance members. Besides, it has approved 10 certified warehouses.