Commodity Exc

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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.

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Commodity Exc