on futures trading in essential commodities, Planing Commission today
said rising prices were not connected with such trading and any
restriction will be contrary to "normal economic rationale".
"Prices rise or do not rise is not at all connected with whether there
is a futures market or not," Deputy Chairman of the Commission Montek
Singh Ahluwalia told reporters here on the sidelines of a seminar.
He said the Abhijit Sen panel, studying the whole issue, has pointed
out that in certain commodities the prices grow despite a ban on their
futures because there was a global surge in their rates.
Ahluwalia also said there was a rise in prices of some commodities
where there was no ban on their futures trading.
Reminding the critics of futures market about Chinese experience, he
said, "There is very active futures market in China... The notion that
futures market create inflation, is simply not supported." Responding
to a query on extending the ban to other commodities in futures
trading, he said: "We should not ban it. It will be a serious
mistake." The Planning Commission Deputy Chairman, however, suggested
that the regulatory framework governing the futures market be
strengthened.
An ordinance in this regard, which was notified late last year, lapsed
early this month.
"The real issue is to regulate futures market correctly. The danger
always comes if futures market are manipulated. I am looking forward
to see whether the Sen panel report says that futures market in our
country are being manipulated," he said
Source : Rediff
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