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Dhimant Bhatt

MUMBAI, Sept. 4

THE Ahmedabad Commodity Exchange (ACE) has submitted a formal application to the Forward Markets Commission (FMC) seeking re-recognition of futures trading in groundnut oil.

``The exchange has applied for the re-recognition as we had been recognised for futures trading in groundnut oil in early 70s. Bylaws and specifications for futures trading in groundnut oil are already in place,'' Mr Pravin Thakker, President, ACE, told Business Line.

After the second All-India Conference of Commodity Exchanges in India held here on August 26, the exchange submitted a note on performance and issues relating to recognition of futures trading in cottonseed, castorseed and groundnut oil; income tax relief; permission for all contracts in cottonseed and castorseed in a year at a time collectively .

At present, the exchange has 6 futures contracts for castorseed and 3 contracts for cottonseed in a year. Futures trading in castorseed and cottonseed in the exchange are done on out-cry system and in castorseed futures, the volume has been improved over the years.

``We have requested FMC to give permission for all these contracts for a year at the same time, in the beginning of the year,'' Mr Thakker said.

ACE has also sought permission for futures trading in cottonseed oil and oil cake and mustard-rapeseed, he said.

For on-line trading in commodities, ACE has tied up with the Ahmedabad Stock Exchange to utilise its software and other infrastructure facilities for on-line trading in commodities. ``A memorandum of understanding has been signed in this regard. This arrangement will also enable members of securities market to participate in commodities trading,'' he said.

ACE has established a special cell with two of its directors to liaison with the Government and other authorities to take up the problems related to futures trading with farmers, traders and exporters. Besides, it also plans to have its own building taking into consideration the future plans, he said.

``Clearing and settlement are being done at present on daily basis. We have proposed that instead of daily clearing, two days clearing in a week, that is to say, first day and fourth day of the week, should be considered. So far as risk is concerned, the quantity limit of trading not increase and thus the present provision of margin and the Trade Guarantee Fund will be sufficient,'' he said.

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ACE seeks re-recognition of groundnut oil futures

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