According to Mr Shamji, leading traders from Sri Lanka, Singapore, Indonesia and Malaysia are expected to join ICE "very soon". More may follow once the dollar denominated trade in pepper commences. A leading trader from Singapore had recently visited IPSTA and had shown keen interest to take up the membership of ICE. Foreign players, intending to take up membership of the exchange, have requested the exchange authorities to raise the contract size to suit them for shipping and transportation purpose if the contracts come up for delivery. In order to introduce the dollar denominated futures contract for black pepper, Ipsta has sought permission from both the Forward Markets Commission and the Reserve Bank of India as well.

The requisite permissions are expected to be available by mid-November so as to commence dollar denominated futures trading in black pepper by first week of December.

The necessary formalities, including amendments in the bye laws have been forwarded to the FMC. However, some confusion still exists regarding registration of members in accordance with the Reserve Bank of India (RBI) guidelines. As per the RBI rules, non-member clients were not required to register with the exchange. Mr Shamji said clarifications have been sought from the central bank.

Currently, domestic trade is done with a limit of 2.5 tn, but there have been requests from foreign players that this be raised to 15 tn This matter is being looked into. Once the dollar-denominated trade starts, members will have to open a dollar account with their respective banks, for which each member will have to deposit Rs 6 lakh with the exchange. A portion of this amount will have to be kept in the dollar account as daily margins they would be paid back in dollars.