PCGA to take PMEX to court

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LAHORE: Pakistan Cotton Ginners Association (PCGA) has decided to file a lawsuit in the Federal Shariat Court against the Pakistan Mercantile Exchange Limited (PMEX) for allowing the introduction of futures trade in cotton.



“The purpose of the legal appeal is to block the anti-shariah practice of futures trade and saving cotton growers, ginners and the textile sector from an economic disaster,” said PCGA ex-executive member Ihsanul Haq on Thursday.


Haq went on to add that the Karachi Cotton Association (KCA) had offered futures trade in cotton in 2005, but such trades came to halt after PCGA moved the case in the Federal Shariah Court and a stay order was issued on futures trade in cotton. He added that futures trade also leads to ‘spot-fixing’ in prices to expel smaller traders out of the market.

Courtesy:  The News


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