| Commodity Online
AHMEDABAD: National Multi Commodity Exchange of India Ltd (NMCE) has mobilized enough resources so as to compete harder with the other two major commodity bourses, MCX and NCDEX.
"We will be going for horizontal growth and you can expect the result to be visible in a year," NMCE Managing Director Kailash Gupta told Commodity Online.
Regarding the growth and future of bourse, Kailash Gupta said that for the past two years the exchange had taken a backseat approach. "We have been observing the market-in which direction it is moving, about the awareness among investors, changes in the regulations and also how far we can mobilize resources," he said.
Regarding dealing with commodity inflation, the Government may not impose any more ban on futures trading in commodities in the country, he said.
"Even with pressure from Left parties and others to ban futures in more agricultural commodities, I am sure the Union Government will act responsibly because it has been proved beyond doubt that futures market in no way contributed to inflation," Kailash Gupta said.
He said that commodity exchanges have already apprised the Union Government about the drawbacks of the Commodity Transaction Tax. Other than the fact that it will not be imposed from April 1 and it won't be imposed with retrospective effect, no indications have come from the government about implementing the new tax.
Kailash Gupta said that speculation is an international phenomenon and often Indian markets reflect the trends seen elsewhere. He said that drop in international commodity prices coupled with steps taken by the Union Government could contain inflation within a month.
He said the decision of the government to allow foreign direct investment in commodity exchanges so far has not made an appreciable impact because of the five percent ceiling for an individual investor. Moreover, overseas players are also taking a wait and watch attitude to the developments in the commodity market in India, he said.
Meanwhile, the NMCE has launched new series for futures contract in base metals, menthol crystal and raw jute. All the contracts will be available for trading on NMCE e-platforms from today.
The new contracts in the six non-ferrous metals - aluminium ingot, nickel prime, copper, zinc, lead and tin - will mature on June 30, 2008. The new contract in menthol crystal will expire on July 31 and that in raw jute on August 30, 2008. |