RUBBER FUTURES TRADE: PANEL TO SUBMIT REPORT

RUBBER FUTURES TRADE: PANEL TO SUBMIT REPORT

The Centre has constituted an expert committee to examine various issues in rubber futures trading and for making suitable recommendations. The Department of Consumer Affairs under Forward Markets
commission had received several complaints on futures trading. The department decided to make more transparent in rubber futures trading, the Committee Chairman Prof K K Abraham told reporters here.
The 11-member committee will examine the restriction on the daily volatility of futures trade in rubber from four per cent to one or two per cent. The committee will also deliberate on the manner of
ensuring physical delivery of at least 10 per cent of the trade transacted on the exchange.
The committee, set up in April, will seek opinion from rubber growers, traders and brokers of futures trading, and submit its report to FMC within six months, he said. Earlier the price of rubber was decided
by tyre companies and big businessmen and after that a parallel marketing system implemented which was helpful to the growers.
The futures trading in rubber will be adversely affected if the restriction on the daily volatility reduced from four per cent to one or two per cent. The committee will organise its meeting in rubber consuming
centres including Mumbai, Kolkota, New Delhi and Ahmedabad prior to submitting its report.

(Source: Bloomberg quoting PTI)