Future trading in iron ore?
HERALD NEWS BUREAU
NEW DELHI, DEC 9
Future trading in iron ore is on the card. Two leading commodity bourses have approached market regulator Forward Markets Commission (FMC) in Mumbai to allow future contracts in iron ore to help the steel companies manage price risk.
A future contract is a standardised contract to buy or sell a specified commodity at a certain date in the future. The price of iron ore currently is around Rs 3000 a tonne.
A report says the FMC that functions under the Ministry of Consumer Affairs headed by Sharad Pawar has sought some clarifications about settlement issue for trading in iron ore.
The ministry sources say a future contract would work effectively only when there is a counter-party.
