MCX awaits nod for launching gas futures

Multi Commodity Exchange (MCX) is considering gas futures launch as soon as it gets approval from Forward Market Commission (FMC).

"We have already done the research work last year and we have applied to FMC for approval. Once it is approved we will study the market at least for one year and then we would launch gas futures", said Jignesh Shah, managing director, MCX.

"We have tried brent crude oil six months ago and it did not work out well. Because, the government and common people all are concerned with crude oil not the brent crude oil. Whenever, one is referring to international crude that means plane crude.

Hence, brent crude oil features in India would not work well. But for energy, gas is widely accepted. That is why we are planning to launch gas crude as soon as possible." said Shah.

"We are the benchmark exchanges in India and others are following suit. We start the contract and others are just replicating us", he added.

Talking on other agri and non-agri commodities, Shah said that each exchange has the right to try its niche. Success and failure depend on acceptance.

In India, commodity futures are not new. But tecnology and foreign markets are still away form the reach of rural areas.Despite the fact that maximum potential lies in these areas, he added.