Rajkot Castor seed Futures Close-January 02
Castor seed future market down shutters
Rajkot Commodity Exchange, India's only operational regional exchange for
castor seeds future, has stopped its operation from today as it failed to bag
the Securities and Exchange Board of India(SEBI)'s permission for new contract.
RCX failed to get nod for new contract due to non-fulfillment of compliances
set by the regulator body.
"We had sent our proposal for new contracts three months back but have not
received any permission. As December Contract was over in last week and we have
not received permission for new contract, we have no option and closed the
market from today", said P B Pathak, executive director of RCX.
"It is not possible for us to meet the conditions set by the regulator that
include online trading, 100 crore net worth creation, de-mutualisation, among
others, said Rajubhai Pobaru, President of RCX. We made several representations
and asked for relaxations but it went failed. Still we are ready to function if
Sebi give relaxation in norms, he added.
The exchange has about Rs. 50 crore net worth including property.
Sebi had last year asked all commodity exchanges to start online trading,
create a net worth of Rs. 100 crore and initiate de-mutualisation within two
Incorporated in 1951 as Rajkot Seeds and Bullion Merchants Association, RCX
went on to trade edible oil and castor seed contracts in an unorganized manner
till 1991 when it bagged official recognition by the Government of India. RCX
also started Soya oil contract in 2010 but it failed in creating volumes and
hence authorities surrendered it within months.
Castor Seeds ready price quoted at 3,675.00 per quintal compared to the previous
closing price of 3,661.00 per quintal.