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National Board of Trade to begin gold, silver trade
Indore, Nov 08: India`s largest commodity futures exchange, the National Board of Trade, plans to add more commodities including gold and silver to its trading list and switchover soon to a screen-based system from open outcry, its executive director said on Saturday.
Indore, Nov 08: India's largest commodity futures exchange, the National Board of Trade, plans to add more commodities including gold and silver to its trading list and switchover soon to a screen-based system from open outcry, its executive director said on Saturday.
"We have received an in-principle approval from the government to begin futures trading in several other commodities like bullion," AS Jeyakumar, said in an interview.
He said the final permission from the government was expected any time, and the exchange should begin trading in gold, silver and cottonseed meal in the first quarter of 2004.
Trading volume at the exchange, which deals mainly in soyoil and mustard seed, accounts for about 70 per cent of the total volume generated by nearly 20 commodity bourses in the country.
The country, with a population of more than a billion people, is the world's largest importer of gold and edible oils and third largest cotton producer. Indians buy gold worth $8.5 billion and edible oils worth $9.0 billion every year.
India recently allowed futures trading in all commodities including bullion, grains and metals. Earlier, they were allowed in 35 goods only such as some oilseeds and oils, several fibres and sugar.
The exchange, with more than 100 members, is planning to expand its online trading network to cover the entire country. It is now offering the online facility for a couple of hours before and after open outcry trading to traders mainly based in Indore, the hub of the country's soybean and meal trade.
"We expect a significant rise in trading volumes after adding new commodities and widening the reach of the online system," Jeyakumar said.
Trading volume at the exchange has risen to about 80,000 tonne a day from 60,000 tonne a year earlier, he said.
Jeyakumar said commodity futures trading in India would grow at a slow pace as taxes in states were different, warehousing receipts were not legally traded and accepted by banks and traders were yet to be convinced about a default-free futures trading system.
Most of the commodity futures exchanges in the country are not generating good volumes as they deal mainly in one or two commodities.
The government this year allowed some companies to set up new futures exchanges to deal in all commodities and conduct online trading with a national reach.
Mumbai-based Multi Commodity Exchange and National Commodity and Derivatives Exchange of India are also set to launch futures trade in several commodities, including gold, silver and edible oils in the next few weeks.
Commodities futures trading in India dates back to 1875 but the government stopped it in 1975. It resumed three years later for a few products, with more allowed in 1997.
Bureau Report
He said the final permission from the government was expected any time, and the exchange should begin trading in gold, silver and cottonseed meal in the first quarter of 2004.
Trading volume at the exchange, which deals mainly in soyoil and mustard seed, accounts for about 70 per cent of the total volume generated by nearly 20 commodity bourses in the country.
The country, with a population of more than a billion people, is the world's largest importer of gold and edible oils and third largest cotton producer. Indians buy gold worth $8.5 billion and edible oils worth $9.0 billion every year.
India recently allowed futures trading in all commodities including bullion, grains and metals. Earlier, they were allowed in 35 goods only such as some oilseeds and oils, several fibres and sugar.
The exchange, with more than 100 members, is planning to expand its online trading network to cover the entire country. It is now offering the online facility for a couple of hours before and after open outcry trading to traders mainly based in Indore, the hub of the country's soybean and meal trade.
"We expect a significant rise in trading volumes after adding new commodities and widening the reach of the online system," Jeyakumar said.
Trading volume at the exchange has risen to about 80,000 tonne a day from 60,000 tonne a year earlier, he said.
Jeyakumar said commodity futures trading in India would grow at a slow pace as taxes in states were different, warehousing receipts were not legally traded and accepted by banks and traders were yet to be convinced about a default-free futures trading system.
Most of the commodity futures exchanges in the country are not generating good volumes as they deal mainly in one or two commodities.
The government this year allowed some companies to set up new futures exchanges to deal in all commodities and conduct online trading with a national reach.
Mumbai-based Multi Commodity Exchange and National Commodity and Derivatives Exchange of India are also set to launch futures trade in several commodities, including gold, silver and edible oils in the next few weeks.
Commodities futures trading in India dates back to 1875 but the government stopped it in 1975. It resumed three years later for a few products, with more allowed in 1997.
Bureau Report