Commexes get FMC nod to resume trading in four items

Commodity market regulator FMC today approved the proposal of four leading exchanges — MCX, NCDEX, NMCE and NBOT — to launch contracts for futures trading in four items that were banned till November-end. “We have approved the applications submitted by MCX, NCDEX, NMCE and NBOT to re-start futures trading in potato, rubber, soyaoil and chana,” said Forward Markets Commission Chairman B C Khatua.

He said the bourses can launch trading in the commodities anytime from tomorrow. While MCX and NCDEX had applied for trading in all the four commodities, NMCE had asked for three and NBOT only soyaoil, Khatua added. FMC has given the go-ahead after scrutinising contract specifications.

When contacted, an MCX official said the exchange will start trading in all the four commodities from tomorrow.

The government had suspended futures trading in the four items for four months on May 6 under pressure from Left parties, who blamed futures markets for price rise. The ban was later extended till November 30. The country’s three top commodity bourses had sought the market regulator’s approval earlier this week to restart futures trading in the four items after nearly a six-month ban ended on November 30.