Revised specifications to be finalized in 30 days for contracts of January 2023 and thereafter in cotton futures trading
The Cotton Product Advisory Committee of the Exchange will be expanded such that more representation from value chain participants including the textile industry is made. The Exchange surveillance mechanism will be further strengthened and closely monitored to prevent any kind of market abuse in cotton contracts.
The trading for contracts of January 2023 and subsequent contracts in cotton futures will be done with revised specifications. Contracts of January 2023 and subsequent contracts would be unavailable for trading until the revised specifications are finalized. The decision was made in a joint meeting of SEBI, the regulator of share and commodity markets, and other related parties. It was also decided in the meeting that the revised specifications will be finalized within a period of 30 days.
A press release from MCX, the exchange for cotton futures trading, said that besides the officials from SEBI and the MCX, the Textile Commissioner, officials from the Textile Ministry, Textile Advisory Group (TAG), Cotton Corporation of India, industry bodies such as CAI, CITI, SIMA and MCXCCL participated in the meeting. The Cotton contract specifications shall be revisited and modified, as may be necessary, in consultation with the Product Advisory Committee of the Exchange, which will also have invitees from other stakeholders including members of the Textile Advisory Group (TAG).
Among other decisions made in the meeting, the re-constitution of the Product Advisory Committee was a major one. The Cotton Product Advisory Committee of the Exchange will be expanded such that more representation from value chain participants including the textile industry is made. The Exchange surveillance mechanism will be further strengthened and closely monitored to prevent any kind of market abuse in cotton contracts.
It was also decided in the meeting to enhance collaboration with industry and trade bodies with the objective of widely spreading education and awareness on cotton futures trading among various cotton industry stakeholders across the country.
