India April-Feb commodity turnover at 35.96 trln rupees

MUMBAI (Reuters) - Turnover at Indian commodity exchanges rose 8 percent to 35.96 trillion rupees from April to February, over the comparable year-ago period, according to data from the Forward Markets Commission (FMC).

Turnover rose 47 percent to 2.09 trillion rupees in the fortnight ending Feb. 29, 2008, compared to the same period last year, the commodity markets regulator said.

Indian commodity bourses saw lower volumes for most of the year, but recovered in the last two months on the back of certain positive regulatory changes and a new legislation, analysts said.

FMC had reduced initial margins on many commodities to 5 percent, which boosted trade participation. Previously margins were as high as 25 percent on some agri-commodities. It had also increased positions limits helping trade.

India approved an ordinance to pass the Forward Contracts (Regulation) Bill, 2006 on Jan. 24, giving more teeth to FMC, and instilling investor confidence.

India also issued guidelines regarding foreign direct and institutional investment in local bourses on Jan. 30.

Turnover was down 7.6 percent to 17.55 trillion rupees in the April-September period, mainly due to falling trade in agricultural commodities.

India allowed futures trading in commodities in 2003 and has three national-level and 21 regional exchanges.