The Hindu : Multi-commodity exchange status for two entities

Online edition of India's National Newspaper
Friday, Jan 10, 2003

Business

Business

Multi-commodity exchange status for two entities

By Our Special Correspondent

NEW DELHI JAN. 9. The Online Commodity Exchange India Ltd. (OCEIL), Ahmedabad, and the National Board of Trade (NBOT), Indore, have been given the status of National Multi-commodity Exchanges. While the NBOT had been trading in future contracts mainly in the Soya complex, the OCEIL is trading in the entire edible oil complex.

The OCEIL, Ahmedabad, has been granted recognition on a permanent basis as it has complied with all the major parameters for achieving the National Commodity Exchange status such as de-mutualisation, diversified interest and on line trading.

The NBOT has been given `in principle approval' subject to completion of formalities, including upgradation of its facilities to national status within ten months.

Though this exchange has achieved considerable volume in trading, it is yet to fulfil all the parameters required for acquiring the Multi-Commodity Exchange status.

The Department of Consumer Affairs has requested the Forward Market Commission (FMC) to monitor the progress.

These exchanges were selected from among 16 initial applicants and from among four short-listed by the FMC after assessing their capabilities/preparedness for handling futures trading in various commodities at the national level.

At present there are 22 recognised commodity exchanges/registered associations under whose auspices forward trading is being conducted.

Printer friendly page
Send this article to Friends by E-Mail

Business