BCE plans MoU with Ahmedabad, Kutch bourses

Our Commodities Bureau

Mumbai, Nov 19: In order to tap the speculator community in Gujarat for improving volumes in the commodity futures market, the Bombay Commodity Exchange (BCE) plans to sign a memorandum of understanding (MoU) with the Ahmedabad Stock Exchange (ASE) and the Saurashtra Kutch Stock Exchange (SKSE).

What is more, the BCE plans to offer membership to the members of ACE and SKSE at a discount, a mere Rs 25,000 against the usual Rs 1.50 lakh for others. This special price for BCE membership would however, will have to be ratified by the boards of respective bourses.

Says BCE president PM Chheda: “The objective is to expand the commodity futures market, for which waiving or reducing admission fee is not a crucial issue for us”. Both the ASE and the SKSE have responded favourably to our proposal, said Mr Chheda, adding “the MoU may be signed by end November”. The BCE’s decision to offer membership to the nominees of the members of the stock brokers is to overcome the restrictions of the Securities and Exchange Board of India (SEBI). According to SEBI guidelines, stock brokers are not allowed to trade in commodity markets. “In this way, we will be able to increase the liquidity and the size of the commodity market without flouting SEBI’s guidelines, by staying under the prescribed legal framework”, said CEO of BCE Anjani Sinha.

BCE’s internet based on-line trading system on commodity futures trading will be operational from November 25, 2001. Consumer affairs and public distribution minister Shanta Kumar is expected to inaugurate the trading system. Trading will take place in the permitted 27 oilseeds based commodities. BCE is also looking at adding sugar, turmeric, pulses and foodgrains to the permitted commodities list.