Press Note

1.                  The Forward Markets Commission denies the reports appearing in certain sections of the press that there is a move to ban futures trading in Guar seed/ Guar gum.  It is clarified that there is no move to ban futures trading in Guar seed/ Guar gum.

2.                It is to be pointed out that FMC had earlier convened a meeting of various Trade Associations, Federations Chambers of industry on 9^th August, 2006 wherein representatives of the Indian Guar Gum Manufacturers Association stated that they were not in favour of prohibition on the futures trade in Guar Seed/ Guar Gum.  They specifically stated that at the end of the day trading in an official Exchange is better than the unofficial Exchanges of the past.  They however, gave certain suggestions for improvement which are under consideration.

3.                The present regulatory measures in regard to Guar Seed are stringent and are similar to those in sensitive commodities like food grains and pulses. However, the Regulator is monitoring the trading in Guar Seed and Guar Gum very closely and taking all steps to strengthen regulation where necessary.

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Dated the 29^th November , 2006

Forward Markets Commission

                                                    ‘Everest’, 3^rd Floor,

                                                    100, Marine Drive,

                                                         Mumbai-400 002