Thursday, September 16, 2010

TIMELINE-India~s steps in commodity futures markets

Sep 16 2010 4:23PM


MUMBAI, Sept 16 (Reuters) - India's cabinet on Thursday approved amendments in forward contracts regulation, allowing exchanges to launch options in the commodity market, the government said in a statement.

The move should increase liquidity in markets which have already attracted international equity investors.

Following is a chronology of key events, turning points and decisions announced since 2003.


April 2003: India allows futures trade in commodities.

Jan 2007: India bans futures trade in pigeon peas and black matpe, for alleged role in stoking prices in physical market.

Feb 2007: India suspends rice and wheat futures. Constitutes Abhijit Sen committee to study link between futures and spot prices.

April 2008: Sen committee submits report saying there was no conclusive evidence showing a link between futures trade and stoking of physical market prices.

May 2008: Futures in soyoil, rubber, chickpea, potato suspended on demands from the government's leftist allies.

Dec 2008: Government restores futures trade in soyoil, rubber, chickpea, potato.

May 2009: Ban on wheat futures lifted.

May 2009: India's commodities market regulator bars launch of new sugar futures contracts until the end of 2009.

Dec 2009: India maintains status quo on sugar futures. Regulator to decide on relisting in September 2010.

Sept 2010: India says it will allow futures trade in sugar from October onwards.

Sept 2010: Indian cabinet approves futures options in commodities.

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