Mumbai, Oct 3: The Securities and Exchange Board of India (SEBI) is likely to clear the modified carry forward system (MCFS) at its forthcoming board meeting on October 15.

According to SEBI sources, finance minister P Chidambaram has already conveyed his views on the MCFS presented by the Varma committee and given the final approval to the regulatory body to go ahead with its discussions on the same, which will be held in Delhi. Among other things, the Varma committee had recommended lower margins and a single-track trading system for both cash and carryforward transactions.

The finance ministry has recommended certain changes in the Varma committee report. As per the amendments made, the new report would highlight the need for a limited single-track trading system, reintroduction of contango payments.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.