This relaxation has been given to four national bourses subject to certain conditions and also depending upon volume and level of traders' participation in a particular contract. (Agencies)
In a recent order, Forward Markets Commission (FMC) said such a move has been taken to ensure the commodity futures market functions efficiently for price risk management and stakeholders like hedgers and farmers are able to discover the future price of commodities.
FMC has given permission for continuous trading in futures contracts of 21 commodities at MCX, 22 commodities at NCDEX and 12 commodities at NMCE and 12 items at ACE.
The approval for continuous trading has been given for the contract specification and contract launch calendar already permitted by the regulator.
FMC has asked exchanges not to change the contract specification and the launch calendar of contracts without prior approval of the regulator.
Exchanges are required to inform the regulator if they decide not to launch a fresh contract even after getting the approval for continuous trading.
"In respect of contract approved for continuous trading, exchange decide that trading in such contract should be suspended, the re-launch of trading in such contract should be with prior approval of commission," FMC added.
FMC said the commission added that it may grant continuous approval in other contracts, after reviewing their performance.
This relaxation has been given to four national bourses subject to certain conditions and also depending upon volume and level of traders' participation in a particular contract.