Futures trading of B Twill jute sackings for the February delivery started in last November. However, from the fourth week of January the market witnessed a rise in the prices due to speculative activities. To put a check, the exchange imposed margins on sales after a particular level.

However, differences rose between the bulls and bears over this level for the imposition of the margins. While the bulls alleged that the bears have been playing second fiddle in determing the level, the bears alleged that cheques issued for payment of margins have bounced.

In the meantime some members went to the Calcutta high court, which ordered suspension of futures trading in jute sackings. The decisions of the exchange's clearing house committee, which was in the thick of this development, was also questioned by different quarters. To find a solution, the board decided to supersede the clearing house committee. However, this decision is not supported by the Forwards Market Commission.

FMC has stated that the decision to supersede the clearing house committee needs two third majority in the board. There is some confusion over it. While one section of the exchange's board members said that it was an unanimous decision, the other section denied. At present, futures trading in the jute goods is suspended.

Over the past few weeks several members have been suspended for rigging prices, carrying out transactions in different names and speculative activities. It was also learnt that apart from dishonouring of the cheques issued for margins, the members have also advised the banks to withhold payment. "All these incidents have affected the functioning of the exchange. So it is better to have it closed for sometime before everything is settled," a member of the exchange.

Industry observers have said that the fight between the bulls and the bears is nothing new in the exchange but the leading members use their power to flout the rules.

"There is bound to be some fight between the bears and bulls in commodity exchange in futures trading. However, the saddest part in the flouting of the rules by the members. The situation in the hessian would not gone that far, if the members had followed the bye-laws properly," an exchange observer said.