The meeting would also consider amendments suggested in the trading norms of the exchange by the Forward Markets Commission (FMC), an Eica circular to its members said.

Eica is the prime force behind resumption of the cotton futures exchange after a gap of over three decades in India.

Moves are afoot to set up the domestic futures exchange after the United Front government cleared it last year based on the recommendations of the Kamal Nayan Kabra Committee, which went into various aspects of futures trading for commodities.

The cotton futures exchange will help textile mills to cover risks of a price rise in cotton due to demand and crop shortage. The mills will book requirements for the commodity in advance to cover the price rise.

The FMC had suggested some changesin the trading rules and regulations submitted by Eica in July. The scheduled meeting in Mumbai will consider all bylaws for the proposed exchange to be set up in that metropolis.

Civil supplies ministry sources here said once the rules and regulations were ready, the exchange could commence operations.

They said Eica was yet to get back to the FMC with the necessary changes in the trading norms.

Originally, Eica had plans to conduct mock trading at the proposed exchange during August-end but FMC suggestions to change the bylaws led to its postponement.

FMC's nod to the futures is considered a formality once the rules and regulations are in place.

Cotton was among the first list of commodities for which futures trading was approved by the United Front government last year. Besides cotton, the government had approved an international futures exchange for castor oil and another for jute goods then.

The International Commodity Exchange for Pepper in Kochi was the first global futures exchange tobecome functional in India in November last. This was followed by the futures for jute goods in April last at Calcutta and a domestic futures exchange for coffee went on stream at Bangalore in June last.

The government has now also cleared the proposal to set up a domestic futures exchange for soyabean and soyabean products, including oil, at Indore.

In the 1998-99 budget, finance minister Yashwant Sinha had announced that government proposed to allow futures trading in oilseeds to ensure good prices for farmers.