Speaking to The Financial Express, Aggarwal said that DVOTA and Rajdhani Oils and Oilseeds Exchange Ltd, Delhi, have signed a Memorandum of Understanding (MoU) in this context and have applied for recognition and permission from the Forward Markets Commission (FMC) to start futures trading in the capital. He also underscored the idea of floating an unified edible oil exchange consisting of the other two proposed exchanges in Mumbai and Indore for edible oils and soyabeans respectively. He added that "at present, the proposed edible oil exchange in Delhi will work independently, but there will be some amount of coordination with the other two proposed edible oil exchanges."

Aggarwal stated that Rajdhani Oils and Oilseeds Exchange has ampleexperiences in conducting futures trading in edible oils before the ban. At present, the exchange is conducting futures trading in gur. DVOTA represents interests of market functionaries like traders, brokers, manufacturers and commission houses in the trade of edible oils, oilseeds and oilcakes. Hence, it is easy for the two organisations to pool their resources and form a formidable entity for running the proposed future exchange.

He said initially CVOTA will provide 100 trading members to the Rajdhani Oil and OIlseeds Exchange. Since the exchange is a recognised one, by the FMC, a permission for additional commodities like edible oils, oilseeds and oilcakes has been sought from the commission. The induction of members from DVOTA into the exchange will be as per rules of the exchange for the purpose of admission and annual fees, while the security will be under FDR and controlled by DVOTA.

There will be five directors each from the Rajdhani Exchange and DVOTA on the board of the exchange. The finalboard will be constituted by representatives nominated by the respective managing committees of the two organisations.

"One director having full knowledge of edible oils, oilseeds and oilcakes from DVOTA membership will be co-opted on the board, subject to prior approval of the managing committee of DVOTA," added Aggarwal. Once the permission is obtained from FMC, efforts will be immediately made to set up a centralised computer based on-line system of trading with terminals at active trading points apart from the conventional method of trading. A guarantee corporation will be setup to ensure smooth system of settlement, and any possible default of members will be taken care of by checks and balances evolved by the corporation whose membership will be mandatory for every persons trading in the exchange.

DVOTA will have lien on the 50 per cent of net income, which will be disbursed for its activities, according to the resolution passed by the then managing committee of DVOTA. The balance will be carriedforward in the books of the Rajdhani Exchange and will be used as per the resolution and directions of the managing committee of the Rajdhani Exchange and its members. The expenses for getting FMC permission would be credited from the account of the Rajdhani Exchange.