Last Updated : Tuesday, January 3, 2017 19:51:17

The only Castor exchange in India, Rajkot ComEx shuts down!!!

MUMBAI | AHMEDABAD | RAJKOT – The only castor trading exchange in India, Rajkot Commodity Exchange also known as “SATTA BAJAAR” (in local trade parlance) has finally shutdown, the exchange stopped operations from Tuesday, January 3, 2017, as the equity and commodity market regulating body Securities Exchange Board of India (SEBI) did not grant the permission to the exchange for new contract, on failing to fulfill the compliance parameters set by the regulatory body.

The exchange has a networth of 500 million (50 crore) rupees, whereas SEBI had asked all the exchanges last year to  start online trading, create networth of 1 billion (100 crore) rupees and initiate demutalization within two months.

Exchange had set proposal for new contracts three months back, but did not get permission, December contracts were over last week and exchange did not get permission for new contracts, left with no option but to close the market from today, P B Pathak, Executive Director of RCX said.

Rajendra Pobaru, RCX President reflected his ‘intentions’ to continue exchange operations, if SEBI indicated some relaxations in norms. “It is not possible for exchange to meet the norms set by SEBI for online trading, creating 1 billion rupees networth and demutualization,” Pobaru said.

Trading Base at RCX where "outcry" system was deployed for carrying out trade transactions.

Trading Base at RCX where “outcry” system was deployed for carrying out trade transactions.

Rajkot Commodity Exchange was incorporated in year 1951 as Rajkot Seeds & Bullion Merchants Association, popularly known as “SATTA BAJAAR” in local trade parlance, which it itself is a today also recognized at landmark in old Rajkot city used to trade edible oil, castor seeds contracts in unorganized manner till 1991 when the exchange was recognized by the Government of India and deployed “outcry” system for trades.  Of the total membership base of the exchange today which stands at 103 members, 5-10 members actively participate in daily trade mechanism.

RCX also started soya oil contracts offlate in 2010 but on failing to create trade volumes, authorities surrendered it within months.

In past in year 2006, RCX had also tried to operate as subsidiary company of Multi Commodity Exchange (MCX) which the authorities had to wind-up in a year’s time, as the participants working on ‘desi’ system were not ready to adopt online transaction platform.

“Also the cost involved in online is huge which is not affordable for a single commodity trading platform like RCX, until and unless we have many commodities on basket, somehow we were denied permission for March futures and so we were left with no option but to wind up the RCX,” Pathak told DATELINE GUJARAT.


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