Mumbai, Mar 16: The recently-formed Coffee Futures Exchange India (COFEI) Ltd has announced the setting up of a three-member committee to finalise the terms and conditions with Bangalore Stock Exchange (BgSE) authorities to commence coffee-futures trading by May 15.Before the final approval for trading from the Forward Market Commission (FMC) early this month, it was expected that coffee futures would be conducted from the premises of the soon-to-fade-out Coffee Board. On this basis, it was expected that the country would see coffee futures by Arpil. But with the committee being set up, it will be delayed by more than a month.Further, the new coffee exchange does not have its own premises for commencing futures trading.
It is seeking cooperation from the BgSE, itself fighting for survival, especially after dwindling business from securities trading. Top office-bearers are interested in commodity futures, including futures in cotton, whenever permitted. This has prompted COFEI office bearers to discussthe modalities with the latter.
The members of the committee include JH Mehta, Cothas K Prakas and G Ramachandran. COFEI chairman Ashwin J Shah will act as ex-officio member of the committee.
The announcement was made by the COFEI board after its meeting in Bangalore last Saturday. The board also announced the appointment of PM Narayana Bhat as the exchange's business manager. Bhat is working with one of the leading coffee- exporting companies and is well known to coffee traders.He has also worked with the Coffee Board.
The new committee has been empowered to discuss with the BgSE officials the arrangement's terms and conditions, subject to the COFEI board's ratification. Meanwhile, to commence coffee-futures trading by May 15, the exchange will distribute application forms from March 23 till March 31, 1998. The last date for receiving the is April 15 -- the earliest closing date was April 10.
After scrutinizing them, potential members are expected to meet the membership and finance committee on April18, 1998 and the board of directors on April 25. After these formalities, coffee futures is expected to commence trading by May 15.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
