2 Min Read
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 years. 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.