Bourses crack FY05 volumes in just 6 mths

Total business in all the major commodities exchanges of the country in the first half (April-September) of 2005-06 increased by 125 per cent to Rs 7.8 lakh crore ($280 billion).

The volume of business generated in the first six months of the current fiscal was higher than the total business generated in 2004-05 of Rs 5.71 lakh crore ($130 billion).

According to S Sundaresan, chairman, Forward Markets Commission (FMC), if business continues to be buoyant, earnings would more than double by the end of March 2006.

He said almost 90 per cent of the total business took place in three major exchanges, NCX, NMCE and NCDEX, while the remaining business was accounted for by 21 regional exchanges.

Sundaresan, who was in Kochi for an awareness campaign on Friday, said the FMC would encourage regional exchanges and would not be party to winding up of any of the regional exchanges.

"They have to add sufficient volume in trading for survival. Some of them may survive and some may not. I can not answer generally. But FMC is of the opinion that regional exchanges should be strengthened since it has real local flavour of business and proximity to growing areas," he added.

FMC had introduced a scheme for technology upgradation of regional exchanges and financial assistance would also be provided. He also said that mutual funds and FIIs would foray into commodities futures market as soon as the regulatory mechanism was in order.

The committee appointed by FMC in this regard had filed its report and central government is considering its recommendations.