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Commodity markets regulator FMC plans to introduce soon the concept of call auction for half an hour in order to curtail market manipulation in commodities futures.
The call auction is prevalent in stock markets.
"We are soon planning to introduce call auction for an half hour with 100 per cent delivery. This will help in getting the final settlement price for commodities futures," Forward Markets Commission Chairman Ramesh Abhishek told PTI.
There were some complaints that prices are being manipulated while determining the final settlement price in a commodity futures contract, he said.
The call auction will help in giving the reference price and prevent trading malpractices, he added.
Abhishek said that the FMC is taking several regulatory measures to bring depth in the market. It has taken steps to strengthen warehousing facilities and improve delivery of commodities from the exchanges platform.
There are four national and six regional level commodity exchanges in the country. The turnover over these exchanges has declined by 50 per cent to Rs 37.05 lakh crore till November 15 of this fiscal.
