"We will write to the relevant stock exchanges - those located closed to commodity exchanges - asking them as to what sort of infrastructure they have at present, which can be used by the commodities exchanges," DS Kolankar, director of FMC told The Financial Express. A meeting was held today at Sebi and attended by stock exchange representatives from Coimbatore, Bangalore, Baroda exchanges and the Inter-Connected Stock Exchange (ICSE) and Kolankar from FMC.

The group will be meeting again on March 10 and is expected to come up with conclusions. A committee has also been set up under the FMC to look into the establishment of a modern, nationwide, integrated commodity exchanges. The report is expected to be submitted shortly, Sebi officials said.

According to Sebi officials, Baroda and Coimbatore stock exchanges have offered their office space, but there is no commodity trading being done at either of these places. The Bangalore exchange officials said that they have already tied up with the Coffee Board for facilitating futures trading.ICSE as well as the Coimbatore exchange, have offered software as the existing software will not be suitable for undertaking futures trades.Kolankar said that discussion were still at the stage of exploring what sort of infrastructure is available at the exchange which can be utilised by the commodities exchanges.

He was, however, non-committal about whether this sort of an integrated approach would boost trading in futures - "There could be an initial increase in volumes," he said, adding that more deliberations were needed before one could make any estimates.

The smaller stock exchanges are at present unprofitable, with very little equities trading being done there. Utilisation of the existing capacities could well add to their revenues, while this could form a precursor to its ultimately leading to trading in equity derivatives and futures.

Sebi has been making efforts in the past and now to induce some activity in the regional stock exchanges and has also proposed a form of membership whereby brokers of these changes can become members of larger exchanges such as BSE, NSE and others.