KARACHI, May 21: The Karachi Cotton Association (KCA) has accused the Karachi Stock Exchange (KSE) of ‘hijacking’ the futures trading in cotton which had been run by it since 1934, but had to close it down on the nationalization of cotton trade in 1975.

The KCA has taken up the matter with the Ministry of Commerce and expressed its fear that it might impinge on the plans to resume futures trading in raw cotton at the Karachi Cotton Association.

The association reminded the Minister for Commerce Abdul Razak Dawood about the deliberations which took place during a meeting held under his chairmanship at the TCP on April 11, 2002.

During the meeting a consensus was developed to resume futures trading in cotton under the aegis of the KCA, and a committee was set up to formulate necessary modalities for the resumption of futures trading in raw cotton.

It had been a shocking news for the KCA and its members that despite the fact that a representative of the SECP Shahid Ghaffar was also present in the April 11 meeting, the matter of granting licence for commodity exchange was taken unilaterally, the KCA lamented.

The KCA in a sort of complaint pointed out to the commerce minister that futures trading was monitored and regulated by the ministry of commerce through the Cotton Board under the Cotton Act 1957.

Therefore, the KCA asserted, there is absolutely no justification in resuming futures trading in cotton through a new commodity futures trading exchange, and KCA wants to register its protest vehemently and strongly at the ‘hijacking’ of the cotton futures trading by the KSE.

The association said that if there was any desire from any quarter for setting up a separate company, it may concentrate its energy and efforts in starting futures trading in other commodities such as rice, wheat, sugar, etc., and leave the business of futures trading in raw cotton to the KCA.

The chairman Karachi Stock Exchange Salim Chamdia on Friday, said that the Securities and Exchange Commission of Pakistan had issued a licence to the National Commodity Exchange Limited (NCEL) for setting up a commodity exchange.

During the discourse with the newsmen Chamdia highlighted the aims and objective of the newly established NCEL and said that that the exchange would start futures trading in gold from September and thereafter would take up forward trading in cotton and other commodities like rice, wheat, etc. KARACHI, May 21: The Karachi Cotton Association (KCA) has accused the Karachi Stock Exchange (KSE) of ‘hijacking’ the futures trading in cotton which had been run by it since 1934, but had to close it down on the nationalization of cotton trade in 1975.

The KCA has taken up the matter with the Ministry of Commerce and expressed its fear that it might impinge on the plans to resume futures trading in raw cotton at the Karachi Cotton Association.

The association reminded the Minister for Commerce Abdul Razak Dawood about the deliberations which took place during a meeting held under his chairmanship at the TCP on April 11, 2002.

During the meeting a consensus was developed to resume futures trading in cotton under the aegis of the KCA, and a committee was set up to formulate necessary modalities for the resumption of futures trading in raw cotton.

It had been a shocking news for the KCA and its members that despite the fact that a representative of the SECP Shahid Ghaffar was also present in the April 11 meeting, the matter of granting licence for commodity exchange was taken unilaterally, the KCA lamented.

The KCA in a sort of complaint pointed out to the commerce minister that futures trading was monitored and regulated by the ministry of commerce through the Cotton Board under the Cotton Act 1957.

Therefore, the KCA asserted, there is absolutely no justification in resuming futures trading in cotton through a new commodity futures trading exchange, and KCA wants to register its protest vehemently and strongly at the ‘hijacking’ of the cotton futures trading by the KSE.

The association said that if there was any desire from any quarter for setting up a separate company, it may concentrate its energy and efforts in starting futures trading in other commodities such as rice, wheat, sugar, etc., and leave the business of futures trading in raw cotton to the KCA.

The chairman Karachi Stock Exchange Salim Chamdia on Friday, said that the Securities and Exchange Commission of Pakistan had issued a licence to the National Commodity Exchange Limited (NCEL) for setting up a commodity exchange.

During the discourse with the newsmen Chamdia highlighted the aims and objective of the newly established NCEL and said that that the exchange would start futures trading in gold from September and thereafter would take up forward trading in cotton and other commodities like rice, wheat, etc.