Commodity futures mkt can grow to Rs 80 lac cr in `10: FMC
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Commodity futures mkt can grow to Rs 80 lac cr in '10: FMC

Last Updated: Friday, January 01, 2010, 20:10
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Commodity futures mkt can grow to Rs 80 lac cr in `10: FMC New Delhi: The commodity market regulator FMC today said bourses can achieve the turnover target of Rs 80 lakh crore if resumption of forward trading in rice, urad, tur and sugar and launch of options and indices are allowed.

Futures trading in the the four commodities is banned and the launch of index and option requires Parliament passing the Forward Contracts (Regulation) Amendment (FCRA) Bill, which will also puts the Forward Markets Commission (FMC) at par with stock market regulator SEBI.

"We hope to see the passage of FCRA Bill this year and also want to bring back all banned commodities on the futures platform to achieve the turnover target of Rs 80 lakh crore in 2010," FMC Chairman B C Khatua told.

The turnover of 24 commodity exchanges in the country was over Rs 67 lakh crore till December 15, 2009.

The FCRA, which has provisions allowing FMC to launch options and indices in commodities, was introduced in Lok Sabha in 2008. However, it could not be passed before the dissolution of the 14th Lok Sabha and, therefore, lapsed.

Commodity broking firms and analysts share the view that the government should not further delay the passage of the Bill in 2010. They said reforms will help speedy growth of the seven-year old sector.

Last month, the Parliamentary panel on Food, Consumer Affairs and Public Distribution suggested that the government reintroduced the bill in Parliament to strengthen the regulatory framework and confer autonomy on the regulator.

PTI

First Published: Friday, January 01, 2010, 20:10

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