The Hindu Business Line : NCDEX mock trading before Diwali

These commodities are soyabean and soya oil, mustard and oil, crude palm oil, RBD palmolein, medium and long staple cotton, and precious metals— gold and silver.

NCDEX is promoted by ICICI Bank Ltd, LIC, Nabard and National Stock Exchange of India Ltd (NSEIL). It has been set up to provide an online platform for trading in commodities and their derivatives.

"To start with, our plan is to provide nationwide online trading platform for futures contracts in nine major commodities. Other commodities will be included in the list by the beginning of next year," Mr Narendra Gupta, Chief Business Officer (CBO) of NCDEX, told Business Line.

"Within a few days, we will start mock trading in all nine commodities. We are ready as far as installation of technologies and systems are concerned but our members want some time to be well-equipped with the trading systems," he added. "So far, we have received nearly 400 applications for membership."

NCDEX has invited applications for two categories— professional clearing members (PCMs) and trading-cum-clearing members (TCMs), both for themselves and/or on behalf of their clients.

"The exchange has set up one delivery centre for each commodity at the national level in the producing centres. In a few months, we will expand these centres," he said.

In the precious metals sector, delivery centres for gold and silver would be Mumbai and New Delhi respectively. Trading unit and delivery unit for gold would be 100 gram and one kg, respectively. For silver, trading unit and delivery unit would be five kg and 30 kg, respectively.

In the oilseeds and oils sector, delivery centres would be Indore for soyabean and oil, Jaipur for mustard seed and oil, Kandla port for imported crude palm oil and Kakinada port for imported RBD palmolein.

Unit of trading for oilseeds and oils would be one tonne and delivery unit would be 10 tonnes.

In cotton, delivery centre for medium staple cotton (J/34-SG) and long staple cotton (Shankar-6) would be Bhatinda and Ahmedabad respectively. Trading unit and delivery unit would be 11 bales and 55 bales respectively.

On whether NCDEX is joining hands with regional exchanges, Mr Gupta said: "We have received some proposals from regional exchanges. They include Kanpur Oilseeds Exchange, and the Jaipur and Agra Bullion Associations. The exchange is also getting several international enquires from players who are interested to trade. But our focus is to bring the Indian commodity markets in line with the international markets."

NCDEX is one of the four multi-commodity exchanges permitted by FMC. The others are National Multi-commodity Exchange (NMCE), National Board of Trading in Derivatives (NBoT) and Multi-commodity Exchange (MCX). NMCE has been in operation since April 2003.

Article E-Mail :: Comment :: Syndication

Stories in this Section
NCDEX mock trading before Diwali

`High costs hinder export of organic products'

Farmers adivised to cultivate alternative crops in southern region

Rubber seen heading north

NY cotton may correct lower

Assurance to Chittoor farmers

CEPC welcomes Ordinance