FMC discounts demand for banning steel future contracts

Mumbai, Apr 10 (UNI) Forwards Markets Commission Chairman B C Khatau today discounted the demand for banning on future contracts on steel in view of the spiraling prices of the metal.

With the demand for steel put at around 60 million tonnes a day, the existing future contracts on steel, limited to hardly Rs 50 crores a day, could hardly make any dent on the pricing factor, he told newsmen after the launch of Carbon contracts trading at the National Commodity and Derivatives Exchange of India (NCDEX).

Referring to the Regional commodity exchanges seeking a common platform or emerge a national player, Mr Khatau said that they have to ensure they have an platform that could enable them to operate at the national level. On the demand for a common platform, he said that the regional exchanges should strive for a common claims and settlement systems. However, there were certain deficiencies and inadequacies in some of the exchanges that need to be rectified before they could seek a common system.

He also said that the strict vigilance of the FMC had enabled the future commodities markets in the country to operate in a transparent and efficient platform besides achieving convergence with the physical markets.

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