Financial Daily from THE HINDU group of publications
Saturday, Mar 15, 2003
Financial Daily from THE HINDU group of publications Saturday, Mar 15, 2003 |
|
|
|
|
|
Agri-Biz & Commodities
-
Rubber Rubber futures trading set to begin — National multi-commodity bourse to offer online facility Our Bureau
KOCHI, March 14 FUTURES trading in rubber will be flagged off for the first time in the country on Saturday with Geojit Securities offering trading facilities through the National Multi-Commodity Exchange of India Ltd (NMCEIL), Ahmedabad. The futures trading in rubber will be inaugurated by the Chairman of the Rubber Board, Mr S.M.Desalphine, here. Speaking to mediapersons here on Friday, Mr Kailash Gupta, Managing Director, NMCEIL said instead of the conventional open outcry system, NMCEIL conducts futures trading only through a transparent screen-based system via VSAT (very small aperture terminal) network. Geojit had the necessary experience to play a critical role in enlarging the commodities futures market especially in natural rubber, he added. The main promoters of NMCEIL are Central Warehousing Corporation, National Agricultural Coop Marketing Federation of India Ltd (Nafed), Gujarat Agro Industries Corporation Ltd (GAICL), National Institute of Agricultural Marketing (NIAM), Gujarat State Agricultural Marketing Board (GSAMB) and Neptune Overseas Ltd. To begin with, RSS-4 grade will be traded on the exchange. Later on, other grades such as RSS-5 and ISR grades will be brought under the purview of the exchange. Two contracts will be offered for April and May delivery and the unit of trading will be one tonne. The Exchange with a membership of 115 is presently trading in 30 oil seeds. There were plans to introduce pepper and other spices in the exchange and it had also applied for futures trading in jute, wheat, rice, silver and gold, he added. Mr Gupta said NMCEIL had an in-house clearing house at Ahmedabad which had connectivity with all the members and clearing banks. Delivery in the underlying commodities was backed by a warehouse receipt, which meets current international standards. Mr C.J. George, Managing Director, Geojit Securities Ltd said sufficient volumes and organised demand for rubber from major industrial producers, who want to leverage the price mechanism, should ensure good turnover right from the start. The majority, who are small cultivators, would also benefit from participation and the company had commenced conducting awareness programmes in derivative instruments to draw them into the mainstream. The clients could trade online in Geojit's Kochi office on NMCEIL terminals. To enable the small and the remote trader to participate, this facility would be extended to Kottayam shortly and to 25 offices across Kerala by June this year. Since Geojit has tied with Reuters' service for information, international prices of commodities would be readily available, he added. According to Mr George, the futures trading on commodities has good prospects in the coming years in view of India's agri-based economy. Recent estimates have also shown that the commodity trading volumes would be 10 times above the stock market volumes in India in the next five years.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|