The Forward Markets Commission will convene a meeting of 21 regional exchanges in the country to prepare a plan of action for their revitalisation, commission's chairman B C Khatua said.
Addressing a press meet in Kochi, he said the commission had circulated a note to these exchanges and an agenda will be set according to the feedback received from them. The meeting is likely to be convened in October or November.
He said the commodity Futures trading in the country had reached a saturation level due to operational constraints. Lack of quality warehousing and difficulties in forming uniform standards for benchmarking each commodity were some of the issues faced
by the commodities market.
The ban imposed by the Union government on Futures trading in wheat and pulses etc had also impacted the growth of the market.
He said the turnover in the commodity exchanges fell by 6 to 7 per cent in the first four months of the fiscal compared with last year. The decline was not significant given the constraints, he added.
According to Khatua, permission for banks and mutual funds in commodity Futures trading will help bring in more liquidity in the market. He said the report of the Abhijit Sen Committee, appointed by the Union government to study the impact of Futures trade in essential commodities, was awaited.
