COMMODITY EXCHANGE IN INDIA

In India there are 25 recognized future exchanges, of which there are three national level multi-commodity exchanges. Government of India has allowed modification of traditional business known as Adhat and Vayda Vyapar to which operate at a national level are:

forward transactions in commodities through Online Commodity Exchanges, a facilitate better risk coverage and delivery of commodities. The three exchanges

National Commodity & Derivatives Exchange Limited (NCDEX) Multi Commodity Exchange of India Limited (MCX) National Multi-Commodity Exchange of India Limited (NMCEIL)

All the exchanges have been set up under overall control of Forward Market Commission (FMC) of Government of India. Forward Market Commission: Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority which is overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt. of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952.

" The Act provides that the Commission shall consist of not less than two but not nominated by the Central Government to be the Chairman thereof. Currently

exceeding four members appointed by the Central Government out of them being Commission comprises three members among whom Shri B.C. Khatua, IAS, is the Chairman, Shri Rajeev kumar Agarwal, IRS and Shri D.S.Kolamkar, IES are the Members of the Commission."

Some of the other exchanges include: Indian Commodity Exchange Limited, Gurgaon Bikaner Commodity Exchange Ltd., Bikaner Bombay Commodity Exchange Ltd., Vashi Chamber Of Commerce, Hapur

Ace Derivatives and Commodity Exchange Limited, Ahmedabad

Central India Commercial Exchange Ltd., Gwalior Cotton Association of India, Mumbai East India Jute & Hessian Exchange Ltd., Kolkata First Commodity Exchange of India Ltd., Kochi Haryana Commodities Ltd., Sirsa

India Pepper & Spice Trade Association., Kochi National Board of Trade, Indore

Meerut Agro Commodities Exchange Co. Ltd., Meerut Rajkot Commodity Exchange Ltd., Rajkot

Rajdhani Oils and Oilseeds Exchange Ltd., Delhi Spices and Oilseeds Exchange Ltd. Sangli

Surendranagar Cotton oil & Oilseeds Association Ltd., Surendranagar Vijay Beopar Chamber Ltd., Muzaffarnagar National Commodity & Derivatives Exchange Limited (NCDEX) National Commodity & Derivatives Exchange Limited (NCDEX) located in Mumbai is a public limited company incorporated on April 23, 2003 under the Companies Act, 1956 and had commenced its operations on December 15, level institutions. It is promoted by ICICI Bank Limited, Life Insurance (NABARD) and National Stock Exchange of India Limited (NSE). It is a 2003.This is the only commodity exchange in the country promoted by national Corporation of India (LIC), National Bank for Agriculture and Rural Development

professionally managed online multi commodity exchange. NCDEX is regulated

by Forward Market Commission and is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations.

Multi Commodity Exchange of India Limited (MCX) Headquartered in Mumbai Multi Commodity Exchange of India Limited (MCX), Government of India. Key shareholders of MCX are Financial Technologies (India) Ltd., State Bank of India, Union Bank

is an independent and de-mutulised exchang with a permanent recognition from

of India, Corporation Bank, Bank of India and Canara Bank. MCX facilitates across the country.

online trading, clearing and settlement operations for commodity futures markets

MCX started offering trade in November 2003 and has built strategic alliances with Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors Association of India, Pulses Importers Association and Shetkari Sanghatana. National Multi-Commodity Exchange of India Limited (NMCEIL) National Multi Commodity Exchange of India Limited (NMCEIL) is the first de-

mutualized, Electronic Multi-Commodity Exchange in India. On 25th July, 2001, it was granted approval by the Government to organise trading in the edible oil Central Warehousing Corporation Ltd., Gujarat State Agricultural Marketing Board and Neptune Overseas Limited. It got its recognition in October 2002. complex. It has operationalised from November 26, 2002. It is being supported by

Commodity exchange in india plays an important role where the prices of any

commodity are not fixed, in an organised way. Earlier only the buyer of produce

and its seller in the market judged upon the prices. Others never had a say. Today, commodity exchanges are purely speculative in nature. Before discovering the price, they reach to the producers, end-users, and even the retail investors, at a market.

grassroots level. It brings a price transparency and risk management in the vital

A big difference between a typical auction, where a single auctioneer announces the bids, and the Exchange is that people are not only competing to buy but also to sell. By Exchange rules and by law, no one can bid under a higher bid, and no as efficient as possible, and keeps the traders on their toes to make sure no one gets the purchase or sale before they do.

one can offer to sell higher than somone elses lower offer. That keeps the market

TRADING PERMISSION GRANTED IN THE COMMODITIES IN 2010 Fibres Spices Edible Oilseeds Edible Oilseeds & Products Oil Refined Soya Oil Gasoline Energy Energy Products Crude Oil Vegetables Pulses & Others Chana

Kapas

Coriander / Dhania

& Oil Crude Palm Oil (CPO)

Potato

Kalyan Kapas

Cardamom RBD Yellow Palmoline Soy Bean Meal

Natural Gas

Light Sweet Crude Oil

Barley

Almond, Isabgul seed, Guar seed

Sacking Turmeric

Rape / Mustard Seed

Castor Seed

Imported Thermal Coal

Brent Crude Oil

MaizeFeed/Ind. Grade

Coffee, Carbon Credit (CER)

Raw Jute

Pepper

Copra / Coconut Oil

Kapas Electricity Heating Khali / (Monthly) Oil Cottonseed Oilcake Expeller Mustard Oil (Kachhi Ghani)

Yellow / Red Maize

Rubber, Mentha Oil,

Jeera / Cumin seed

Soya Bean

Electricity Aviation Wheat (Weekly) Turbine Fuel (ATF)

Gur, Menthol Flakes, Menthol Crystal, Guar Gum

Metals: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Copper Aluminium Lead Mild Steel Ingot / Billets Steel Long Nickel Platinum Zinc Tin Gold ( 1 Kg.) Gold Mini (100 Gms) Gold HNI Gold Guinea Gold International Silver (30 Kg.) Silver HNI

17 18

Silver Mini (5 Kg) Silver International