Commodity trading in India
Today, apart from numerous regional exchanges, India has four national commodity exchanges namely,
- Multi Commodity Exchange (MCX),
- National Commodity and Derivatives Exchange (NCDEX),
- National Multi-Commodity Exchange (NMCE) and
- Indian Commodity Exchange (ICEX).
The regulatory body is Forward Markets Commission (FMC) which was set up in 1953.
Forward Markets Commission INDIA
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.
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.
MCX
Having started operations in November 2003, today, MCX holds a market share of over 80% of the Indian commodity futures market, and has more than 2100 registered members operating through over 1, 80,000 trading terminals, across India. The Exchange was the sixth largest# commodity futures exchange in the world, in terms of the number of contracts traded in CY2010.
MCX offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, energy, weather and a number of agri-commodities on its platform. The Exchange is the world's largest exchange in Silver, the second largest in Gold, Copper and Natural Gas and the third largest in Crude Oil futures, with respect to the number of futures contracts traded.
MCX offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, energy, weather and a number of agri-commodities on its platform. The Exchange is the world's largest exchange in Silver, the second largest in Gold, Copper and Natural Gas and the third largest in Crude Oil futures, with respect to the number of futures contracts traded.
NCDEX
National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity exchange based in India. It was incorporated as a private limited company incorporated on 23 April 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of Business on 9 May 2003. It has commenced its operations on 15 December 2003. NCDEX is a closely held private company which is promoted by national level institutions and has an independent Board of Directors and professionals not having vested interest in commodity markets.
NCDEX is a public limited company incorporated on 23 April 2003 under the Companies Act, 1956. NCDEX is regulated by Forward Market Commission (FMC) in respect of futures trading in commodities. Besides, NCDEX is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations, which impinge on its working. On 3 February 2006, the FMC found NCDEX guilty of violating settlement price norms and ordered the exchange to fire one of their executive.
NCDEX is located in Mumbai and offers facilities in more than 550 centres in India.
NMCE
National Multi-Commodity Exchange of India Limited is committed to provide world class services of on-line screen based Futures Trading of permitted commodities and efficient Clearing and guaranteed settlement, while complying with Statutory/ Regulatory requirements. We shall strive to ensure continual improvement of customer services and remain quality leader amongst all commodity exchanges.
NMCE has many firsts to its credit - the first, online, demutualised, multi-commodity exchange in the country to get national status. We are the one and only one Commodity Bourse in the world to obtain the prestigious ISO 9001:2000 certification awarded by the British Standard Institutions (BSI). NMCE not only revived futures trade electronically in the commodities in India after a gap of 41 years, but also integrated the centuries old commodity market with the latest technology. It is backed by compulsory delivery based settlement to ensure transparent and fair trade practices. NMCE offers electronic platform for future trading in plantation, spices, food grains, non-ferrous metals, oil seeds and their derivatives.
NMCE is promoted by commodity-relevant public institutions, viz., Central Warehousing Corporation (CWC), Punjab National Bank (PNB) National Agricultural Cooperative Marketing Federation of India (NAFED), Gujarat Agro-Industries Corporation Limited (GAICL), Gujarat State Agricultural Marketing Board (GSAMB), Neptune Overseas Limited (NOL), National Institute of Agricultural Marketing (NIAM), NMCE invites applications for Institutional Clearing Membership, Professional Clearing Membership, Trading Cum Clearing Memberships, and Trading Memberships.
ICEX
Indian Commodity Exchange Limited is a nation-wide screen based on-line derivatives exchange for commodities and has established a reliable, efficient and transparent trading platform. It has put in place assaying and warehousing facilities in order to facilitate deliveries. This exchange is ideally positioned to leverage the huge potential of commodities’ market and encourage participation of farmers, traders and actual users to benefit from the opportunities of hedging, risk management and supply chain management in the commodities markets.
The Exchange is a public-private partnership with Reliance Exchangenext Ltd. as anchor investor and has MMTC Ltd., Indiabulls Financial Services Ltd., Indian Potash Ltd., KRIBHCO and IDFC among others, as its stakeholders.
Indian Commodity Exchange Limited is a nation-wide screen based on-line derivatives exchange for commodities and has established a reliable, efficient and transparent trading platform. It has put in place assaying and warehousing facilities in order to facilitate deliveries. This exchange is ideally positioned to leverage the huge potential of commodities’ market and encourage participation of farmers, traders and actual users to benefit from the opportunities of hedging, risk management and supply chain management in the commodities markets.
The Exchange is a public-private partnership with Reliance Exchangenext Ltd. as anchor investor and has MMTC Ltd., Indiabulls Financial Services Ltd., Indian Potash Ltd., KRIBHCO and IDFC among others, as its stakeholders.
