NCDEX tips - Bangalore

Friday, 9 September, 2016

Item details

City: Bangalore, Karnataka
Offer type: Offer

Contacts

Contact name money classic research
Phone 9039777700

Item description

NCDEX (National Commodity and Derivatives Exchange Ltd.) is India’s leading online exchange, where customers have great trust. NCDEX offers the widest range of products across agriculture and precious metals. It facilitates market players to trade in commodity derivatives. It offers futures trading in agricultural and non-agricultural commodities like Chana, Jeera, Castor Seeds, Soya Oil, Turmeric, Guar Gum, Cotton, Soya Beans, Crude Palm Oil, Sugar, Mustard Seeds etc. NCDEX brings buyers and sellers together through its electronic trading platform. With a widely held shareholding, NCDEX has a good recognition of being the single exchange in the country promoted by national level institutions. The promoters and shareholders of NCDEX are major players in their respective areas and bring with them institutional building experience and trust.
NCDEX facilitates deliveries of commodities through a high network and offers average deliveries of 1.00 lac MT at every contract expiry. It also offers an agricultural commodity index which is a value-weighted index named as DHAANYA and is computed in real time using the prices of the ten most liquid commodity futures traded on the NCDEX platform. Also it offers futures trading in 31 agricultural and non-agricultural commodities.
An individual, partnership firm, Private or Public limited company, co-operative societies are eligible to become members of NCDEX. With growing farmer participation in agricultural commodity derivatives on NCDEX, the exchange has recently initiated compulsory sampling and testing for outward bound deliveries, starting with rapeseed and mustard. Also NCDEX has planned compulsory sampling and testing with respect to all contracts in rapeseed and mustard seed on a pilot basis.
As per SEBI regulations, if a buyer or seller is not satisfied with the quality of items delivered at the exchange, then the responsibility lies with the Exchange. This initiation was taken based on complaints from the traders that sometimes poor quality of goods delivered at the exchange’s platform. The commodity exchanged is regulated by SEBI so as to ensure quality commodities.
Now, more than 8000 farmers across the country have hedge their commodity price-risk on NCDEX platform. These farmers are utilizing aggregation of produce to gain bargaining power and enjoying the futures platform participating through Farmer Producer Companies (FPC).
There are a lot of features which hold significance when dealing in the NCDEX market and hence a good research and risk management are also important. In India, commodity futures also have delivery settlement. Among the commodities listed on exchanges, many items attract a mass of volumes and liquidity. The commodities like coffee, tea, milk powder, white butter etc. have huge producer interest and prices are volatile, hence it requires risk management tools like derivatives.

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