FICCI welcomes evening trading in Agri Commodities
Hailing Forward Markets Commission (FMC) decision to allow evening trading in internationally-linked agricultural commodities, FICCI today said the move will help in 'restricting illegal trade' that reportedly took place once the domestic market closed for the day.
''Evening trading on domestic exchanges will facilitate more efficient alignment of the domestic prices with the international prices, thereby greatly reducing the basis risk currently faced by the domestic industry,'' the industry body said.
The Forward Markets Commission (FMC), the derivatives markets regulator, has allowed evening trading in internationally-linked agricultural commodities effective today.
The aim is to widen the horizon of the commodity futures market and to bring agri commodities at par with non-agri ones in trading practices. FMC has notified 10 such commodities.
''The move as this will help farmers, traders and processors. The move will also help in restricting the parallel (illegal) trade that reportedly took place once the domestic market closed for the day,'' the industry body said.
Since commodities are traded globally, FICCI believes this is
a step in the right direction to improve the linkages of the Indian commodity exchanges with global markets, it added.
(Posted on 01-04-2014)