The National Commodity & Derivatives Exchange (NCDEX) is aiming at an annual futures trading target of 100 million tonnes for the recently launched thermal coal contracts in the next 12 months .
The exchange plans to tap 10 per cent of free-price coal trading in the country during the period, said R Ramaseshan, managing director and chief executive officer, NCDEX, at a press conference in Kolkata on Saturday.
The total turnover of the coal market in India in terms of tonnage is about 400 million, out of which 20 per cent is traded through free-price mechanisms, like e-auction.
“The average trading volume in coal at the exchange so far been about 700 tonnes per day,” Ramaseshan said.
Meanwhile, in accordance with the guidelines of the Forward Markets Commission (FMC), the exchange has informed Atlanta-based Intercontinental Exchange Holdings, which holds 8 per cent stake in NCDEX, and Goldman Sachs, which owns 7 per cent in the bourse, to reduce their respective shareholdings by June 2009.
Also, in view of an alleged delivery default in certain commodities, such as jeera, in recent days, the exchange hopes to implement stringent norms to check defaults, after consultations with FMC.
“There have been concerns about defaults in jeera delivery. We are working with FMC on various alternatives. We are waiting for FMC’s directives.”