The board of directors convened a meeting to take stock of situation on Thursday. After hours-long discussions, they were unable to find a solution and decided to meet again on Saturday to discuss the same, an ASMA source said.

As market has been closed since last four days, broker community is worried about the future of castorseed trading in the exchange. An unconfirmed report says September future trading will resume with some modification of contract terms. According to a leading broker, ASMA authorities has forwarded a proposal containing modified terms of contract to Forward Markets Commission (FMC).

If FMC grants the proposal, future trading will resume latest by Thursday. In the proposal, ASMA authority has urged that futures trading may resume with price limits. There will be a benchmark price of Rs1600 for the proposed futures. It will have price limits of Rs 150. Similar type trade mechanism exists in illegal markets like Bhabar. If FMC allows such a price-band, it will be undeclared approval to illegal Bhabhar castor futures, said a broker.

"Proposed price limits will be of Rs 150 either side. On the lower side, Rs 1450 will be floor price, while Rs 1750 will be upward price limit. Beyond the price limits, future will be automatically `kut'. It does indicate that Rs 300 is a full trading rnge for the proposed future.

According to an ex-director of ASMA, if futures trading in September resumes with such a term, it will be the height of malpractice in futures trading.

In the past, whenever futures have suspended, trading in the same future never resumed. When some problem arise and there is no other alternative, authorities will `kut' the future. Which means trading has been suspended and all the positions will be settled at mutually agreed price. Then only new contract will open.

"Forinstance if September future has been suspended there will be December future which is next one. It's a tradition of business. Due to suspension of futures either bull or bear has to lose. Loser has to forget about his money, which he has paid by clearing. If same contract resumes, those who has lost money will not be able to get it back even if prices reverse, as previous positions has been square off. In a way it is injustice to a player or a group of players whether it is bull or bear," said a leading speculator.

The current state of market is not healthy. Futures trading being considered as an alternate gambling. Since September 1996, trading pattern in castorseed futures has become unhealthy, in the march 1997 castor future tussle between bulls and bear turned in to police complaints and unethical practice. After such an incident, both parties agree to carry forward their outstanding positions. In that particular future, even tenders of seeds settled at badla rate of Rs 85.

An already issued tenderdelivery has turned in to carryforward is a unique case in the history of futures trading. Despite such incidents, ASMA has been lucky enough to get futures permission from FMC. Sangli turmeric exchange seems not that much lucky, an analyst said.

There are other issues which need to be addressed. If September futures don't resume, it is difficult to start December contract because of the badla factor and existing outstanding positions. It's a hobson choice for the authorities, said an ex-director. At present it's a no-win situation.

Exchange brokers await the outcome of meeting to be held on Saturday. As spot markets still remain volatile, spot seed traders too reluctant to trading. As futures market is closed and no more ringing of telephones, broker community has enough time for self assessment, says a broker.