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COMMODITY EXCHANGE IN
INDIA
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INTRODUCTION A commodity exchange is a place where
various commodities and derivatives are
bought and sold. Commodities exchanges
usually trade on commodity futures.
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LIST OF COMMODITY EXCHANGES IN INDIA
1. Bhatinda Om & Oil Exchange Ltd., Batinda.
2. The Bombay Commodity Exchange Ltd., Mumbai
3. The Rajkot Seeds oil & Bullion Merchants` Association Ltd
4. The Kanpur Commodity Exchange Ltd., Kanpur
5. The Meerut Agro Commodities Exchange Co. Ltd., Meerut
6. The Spices and Oilseeds Exchange Ltd.
7. Ahmedabad Commodity Exchange Ltd.
8. Vijay Beopar ChamberLtd., Muzaffarnagar
9. India Pepper & Spice Trade Association, Kochi 10. Rajdhani Oils and Oilseeds Exchange Ltd., Delhi
11. National Board of Trade, Indore
12. The Chamber Of Commerce, Hapur
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13. The East India Cotton Association, Mumbai
14. The Central India Commercial Exchange Ltd., Gwalior 15. The East India Jute & Hessian Exchange Ltd.
16. First Commodity Exchange of India Ltd, Kochi
17. Bikaner Commodity Exchange Ltd., Bikaner
18. The Coffee Futures Exchange India Ltd, Bangalore
19. EsugarindiaL
imited 20. National Multi Commodity Exchange of India Limited
21. Surendranagar Cotton oil & Oilseeds AssociationLtd
22. Multi Commodity Exchange of India Ltd
23. National Commodity & Derivatives Exchange Ltd
24. Haryana Commodities Ltd., Hissar
25. e-Commodities Ltd
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MAJOR COMMODITY
EXCHANGE
MCX
NMCEILNCDEX
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MCX MULTI COMMODITY EXCHANGE
MCX: refers to Multi Commodity Exchange which facilitates trading in avariety of commodities in the country.
This is an independent commodity exchange operating in India with its base in
Mumbai.
The MCX was established in the year 2003 with NABARD, NSE, Financial
Technologies India Ltd, Corporation Bank, Bank of India, Bank of Baroda,
HDFC BankLtd, SBI Life Insurance Corporation Ltd, Fid Fund (Mauritius)Ltd etc. as key share holders.
MCX reaches out to 500 Indian cities with about 10000 trading terminals.
MCX is the only market in India where multiple commodities are traded.
MCX is engaged in future trading in a number of commodities like agricultural
commodities, Bullion, Ferrous and Non Ferrous metals, Pulses, Oil and OilSeeds, Energy, Plantations, Spices and soft commodities.
The average daily turnover of MCX is about 1.55 billion US Dollars. Multi
Commodity Exchange (MCX) captures almost 72% of the market share and
thus it occupies No1 position in India in the commodity market.
MCX occupies no 1 position in the world in respect of silver, No 2 position in
Natural gas and No 3 position in crude oil and gold.
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Metals - Aluminum, Copper, Lead, Nickel, Sponge iron, Steel Longand Steel flat, Tin, Zinc
Bullion - Gold, silver
Fibre - Long, medium and short staple cotton, Cotton yarn etc
Energy - Crude oil, Furnace oil, Natural gas etc
Spices - Cardamom, Jeera, Pepper, Red Chilly Pulses - Chana , Masoor and yellow peas
Plantation - Arecanut, Cashew kernel, Coffee, Rubber
Petro chemicals - HDPE, Polypropylene, PVC
Oil and Oil Seeds - Castor, Coconut, Cotton Seed, Palmoline, ground
nut, Mustard, Soya, Sunflower, Sesame and Rice Bran
Cereals - Maize
Others - Mentha oil, Potato, Sugar
CategorywiseMulti Stock Exchange (MCX)
Commodities Index:
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MCX works in joint venture with National Spot Exchange,
a purely agricultural Commodity Exchange for the
standardization in agricultural markets.
It also works in conjunction with National Bulk Handling
Corporation which helps farmers in bulk handling of
agricultural commodities.
MCX has also set up a management course i.e Diploma inCommodities Market in cooperation with Welingkar
Institute of Management to train young managers deal
efficiently in the commodities market.
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NationalCommodities and Derivatives Exchange
(NCDEX)
NCDEX:NCDEX stands for National Commodities and Derivatives Exchange Ltd. The
aim of the company is to make forward contracts simple, safe and secure.
NCDEX is a public limited company incorporated on 23.4.2003 under the Companies
Act, promoted by national level financial institutions like ICICI Bank, LIC, NABARD,
NSE, Canara Bank, CRISIL, Goldman Sachs, IFFCO and PNB with an aim to bring in
standardization and professionalism in forward contract and also to bring in security to
the producers. They hold equity shares in the NCDEX.
The NCDEX offers many benefits. The promoters of the company are: financial
institutions with long standing, experience and expertise in the field of financial dealings
and contracts. So they bring in experience, trust, nation wide reach, technology and risk
management skills.
The NCDEX is a national level, on line commodity exchange and its speciality is that it
is a technology driven exchange market.
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NCDEX is located in Mumbai and has 550 centres all over the
country. NCDEX trades in 57 commodities like;
agricultural commodities,
Precious metals,
Base metals,
Ferrous metals,
Energy,
polymers etc.
NCDEX offers a platform for market participants to trade in
commodities and derivatives under sound global practices and on a
wider canvas.
Another important feature of NCDEX is its transparency.
NCDEX is regulated by the Forward Markets Commission and is
governed by the Forward Contracts Regulation Act, the Indian
Companies Act, The Stamp Act and the Indian Contract Act.
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NMCEIL NATIONALMULTI
COMMODITY EXCHANGE OF INDIA
Ltd. May'1999, first state-of-the-art demutualised multi-commodity Exchange,
National Multi Commodity Exchange of India Ltd was incoporated.
(NMCE) was promoted by commodity-relevant public institutions, viz.,
Central Warehousing Corporation (CWC),
National Agricultural Cooperative Marketing Federation of India(NAFED),
Gujarat Agro-Industries CorporationLimited (GAICL),
Gujarat State Agricultural Marketing Board (GSAMB),
National Institute of Agricultural Marketing (NIAM),
Neptune Overseas Limited (NOL).
Punjab National Bank (PNB) took equity of the Exchange to establish that
linkage.
NMCE is the only Exchange in India to have such investment and technical
support from the commodity relevant institutions.
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These institutions are represented on the Board of Directors of the
Exchange and also on various committees set up by the Exchange to
ensure good corporate governance. Some of them have also lent their
personnel to provide technical support to the Exchange management.
The day-to-day operations of the Exchange are managed by the
experienced and qualified professionals with impeccable integrity and
expertise. None of them have any trading interest.
NMCE commenced futures trading in 24 commodities on 26th
November, 2002 on a national scale and the basket of commodities hasgrown substantially since then to include ;
cash crops,
food grains,
plantations,
spices,
oil seeds,
metals & bullion among others. Research Desk of NMCE is constantly
in the process of identifying the hedging needs of the commodity
economy and the basket of products is likely to grow even further.
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NMCE has also made immense contribution in raising awareness
about and catalyzing implementation of policy reforms in thecommodity sector.
NMCE was the first Exchange to take up the issue of differential
treatment of speculative loss.
It was also the first Exchange to enroll participation of high net-worth
corporate securities brokers in commodity derivatives market.
It was the Exchange, which showed a way to introduce warehouse
receipt system within existing legal and regulatory framework.
It was the first Exchange to complete the contractual groundwork for
dematerialization of the warehouse receipts. Innovation is the way of
life at NMCE.