Backdoor Forward Trading

Backdoor Forward Trading Nishtar THE stock market no longer wears the anaemic look it has presented for a long while because of the ban on forward trading. It is beginning to pulsate with life and jobbers have reappeared on the scene. The overall trading volume gives one the impression as if forward trading has been allowed to be resumed. The ban has not been lifted but the market authorities in Bombay have considerably relaxed the trading rules. Facilities for settlement of transactions not only in cleared securities but also in select cash counters have brought about a marked increase in turnover. New Delhi cannot be unaware of "illicit" forward trading for which it itself is no less to blame. It is the inordinate delay, in lifting the more than 13- month old ban which has forced the market authorities to resort to relaxation of trading rules in order to pacify the stock exchange fraternity which had been getting increasingly restive due to lack of business. There is no reason why Government should not be able to take a decision on an issue like forward trading in shares, especially when it has been in possession of the Anjaria Committee's report for quite some time.