The government today said it is in the process of strengthening the clearing and settlement system for commodity futures trading in the country, a move that follows large default at NSEL last year.
The Department of Economic Affairs had earlier set up a Working Group to prepare a road map and structure for a common clearing system (CCS) for all commodity exchanges to reduce transaction cost of market participants. The group was also to suggest ways to strengthen the risk management systems.
"The Working Group has submitted its report to the Department," the Finance Ministry said in a statement.
The Ministry has also sought public comments on the report.
The total turnover of exchanges have almost halved to around Rs 65 lakh crore in 2014 due to imposition of Commodity Transaction Tax (CTT) on non-agri commodities and negative sentiment in the market following Rs 5,600 crore payment scam at NSEL.
