FMC stops futures trading in non-farm items on Saturdays
New Delhi: The commodity markets regulator on Wednesday said futures trading in non-farm items will not be permitted on Saturdays from now on.
"All the commodities exchanges shall keep their trading platform closed for non-agricultural commodities futures on Saturdays with immediate effect," the Forward Markets Commission (FMC) said.
Futures trading in farm commodities will continue on Saturdays as per the current schedule and the matter will be reviewed after three months, the FMC said in a circular.
Currently, bourses permit futures trading in all commodities from 10 am to 2 pm on Saturdays. On regular week days, futures trade in farm items is allowed from 10 am to 5 pm while non-farm futures trading takes place from 10 am to 11.55 pm.
The FMC's decision follows feedback from exchanges, commodity brokers and physical market participants.
They had said the rationale for futures trading in non-agricultural commodities on Saturdays does not hold good because the international commodities futures markets are closed on that day.
They also suggested that Saturdays should be used by the exchanges and their members for housekeeping, maintenance of records and attending to compliance matters.
The FMC regulates 21 commodity exchanges in the country, of which six operate at the national level.