Kolkata jute exchange gets nod for futures foray

The East India Jute & Hessian Exchange is set to get a fresh lease of life with the union ministry of consumer affairs, food and public distrbution granting it recognition as an exchange authorised to conduct futures trading in raw jute.

According to the rules, the exchange would now have to get permission from the Forward Markets Commission. The recognition from the ministry is with effect from April 7, 2006.

Raw jute futures would boost the prospects of the dying exchange, which was dealing in forwards trading in sacking that stopped from February 2004.

Exchange sources said the commencement of raw jute futures would bring back ring members to the exchange as most of them had shifted to the National Multi-Commodity Exchange, Ahmedabad for raw jute futures trading.

The exchange had also received approval for the amendments to the bye-laws pertaining to futures trading in raw jute.

Arun Kumar Seth, president of the exchange, was expecting the commencement clearance from the Foward Markets Commission soon.