With the ban on futures trading in sugar 'lapsing,' the National Commodity and Derivatives Exchange (NCDEX) has sought permission to trade in it, a top official said today.
NCDEX MD and CEO R Ramaseshan told reporters here that the ban issued in May 2009 was valid till September this year, and had lapsed thereafter.
"There is a possibility that sugar can be traded now. We have filed permission papers (to trade sugar) with the Forward Markets Commission (the regulatory authority)," he said.
The ban was imposed last May following steep increase in prices of sugar and with the country importing it in large quantities.
Responding to reporters' queries on the Warehousing Development and Regulation Act, he said that the Warehousing Development Authority had been constituted recently and expressed confidence that it would come out with its guidelines on regulation in a year or two.
"There are better chances that the Act will become a reality soon," Ramaseshan said.
On NCDEX funding, he said the exchange had met the Government of India guidelines of networth of Rs 100 crore, but was still short of the equity capital of Rs 50 crore, needed to meet the stipulations for rights issue.
"We have completed one round of rights issue raising Rs 37.50 crore and are in the process of evaluating to reach the Rs 50 crore mark by the month end," he added.
On the exchange coming up with an IPO, he said this was not an apt time though there was no ban on it coming out with a public issue.
