October 12, 2008

NCDEX may shift focus towards metal & energy

BL reported that, as the uncertainty over ban on futures trading of agri products continues, National Commodity & Derivatives Exchange Limited may change focus towards metals and energy contracts to boost its depleting turnover.

An NCDEX Board member said that "The board will take a view of all factors including the Abhijit Sen Committee report to decide its future course of action." He added that the board had earlier asked NCDEX to explore more options apart from the agri commodities.

He said that there is speculation in the market that the government may ban futures trading of some more commodities, so NCDEX will decide how to increase its turnover that has dropped significantly during the last year.

Although the Abhijit Sen Committee, set up to study the impact of futures trading on prices of essential commodities, is silent on the issue regarding ban on agri futures, Mr P Chidambaram union finance minister said that the government may prohibit some more commodities.