Press Note

          It has been reported to the Forward Markets Commission that despite the clarifications issued in the month of April 2006 real time trading in commodity derivatives is being conducted on foreign bourses.      It is reiterated and clarified once again that forward contract, other than those that are a) entered into between members of a recognized association or through or with such members in goods that are notified under Section 15 of the Forward Contracts (Regulation) Act, 1952; b) complying with the bye-laws of recognized exchanges and c) not in violation of any contract specification, would be considered illegal and void.  Therefore, real time trading in a commodity by opening the terminals of foreign commodity exchanges in India without prior approval of the Central Government or FMC, as the case may be, would be deemed as illegal and persons entering into such contract would be punishable under Section 21 of the FCR Act, 1952.

                                                         _____________________________

                                                          Dated the 5^th March, 2007

                                                             Forward Markets Commission

                                                              Everest, 3^rd Floor,

                                                              100, Marine Drive

                                                               Mumbai- 400 002