Kochi, May 14 (UNI) Stating that the Centre's ''abrupt decision'' to suspend futures trading in rubber had ''badly affected'' the credibility of commodity exchanges, the National Multi Commodity Exchange (NMCE) today said there was an urgent need to restore clients' confidence.
Addressing a meeting of NMCE clients holding open interest in rubber contracts here, NMCE President Kailash Gupta and CEO Anil Mishra said the suspension of futures trading in rubber was totally unexpected and unwarranted.
Stating that rubber prices were linked to international trends, Mr Gupta said suspending the domestic futures trading for four months was not going to dampen the prices.
In fact, the prices continued to remain at the same level as on May seven, the day on which futures trading was suspended for rubber and three other commodities, he said.
On May seven, the open holding position among various buyers and sellers was 4,324 tonnes. For June it would be 1,500 tonnes, for July 800 tonnes and for August 200 tonnes, he added.
Mr Anil Mishra said that commodities trading could not be treated as an on-off affair and said the market regulatory Forward Markets Commission (FMC) should come up with some solution to restore confidence.
All Kerala Rubber Dealers Association President, Thomas J Maippan said the organisation was contemplating moving the court against the government's decision.
Acumen (formerly Peninsula) Commodities MD, Akhilesh Aggarwal said the decision to suspend futures trading in rubber was a ''political decision and not economic .'' The FMC should compensate those who had suffered losses due to the government's decision, he added.
Mr C P Krishnan of Geojit Financial Services said most of the clients hedging their position on the exchange had been badly affected and some compensation should be given in accordance with the losses suffered by them.
UNI ARC GKT 1936