Financial Daily from THE HINDU group of publications
Tuesday, Nov 11, 2003
Financial Daily from THE HINDU group of publications Tuesday, Nov 11, 2003 |
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Agri-Biz & Commodities
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Commodity Exchanges NCDEX online trading by month-end Dhimant Bhatt
Mumbai , Nov. 10 NATIONAL Commodity and Derivatives Exchange Ltd (NCDEX) is all set to go for online trading by month-end. The exchange has already started mock trading in 9 major commodities including gold, silver, soya bean, refined soya bean oil, rapeseed-mustard seed, expeller rapeseed-mustard seed oil, RBD palmolein, crude palm oil and raw cotton. NCDEX is jointly promoted by ICICI Bank Ltd, the National Bank for Agriculture and Rural Development (Nabard), Life Insurance Corporation of India (LIC) and the National Stock Exchange (NSE). "At the first instance, we will start online trading of nine commodities by month-end, once the installation of VSATs and their networking are completed in nearly 40 centres in the next couple of days. We are expecting a formal approval from the Forward Markets Commission (FMC) for 9 commodities in the next 2-3 days time," Mr Narendra Gupta, Chief Business Officer (CBO), told Business Line. At subsequent phases, trading in more commodities would be facilitated, he said. "We have already started mock trading in 9 commodities with participants strength of about 50. Out of total 500 applications, we have in-principal cleared and approved 375 memberships. The ratio of commodities brokers and stocks brokers in total membership is 50:50," Mr Gupta said. The exchange is located in Mumbai and it would offer facilities in about 40 cities throughout the country. The reach will gradually be expanded to other cities, he said. The trade timings of the exchange would be 10.00 a.m. to 4.00 p.m. The exchange is also intending to start futures trading in agricultural products, metals including precious metals, precious stones, diamonds, petroleum and energy products and all other commodities and securities, in spot markets and in futures. NCDEX has tied-up with National Securities Clearing Corporation of India (NSCCL) for clearing the trades. Canara Bank HDFC Bank, ICICI Bank and UTI Bank have agreed to act as clearing bankers. For depository participants, NCDEX has approached Bank of Baroda, Canara Bank, Global Trust Bank, HDFC Bank, ICICI Bank, IDBI Bank IndusInd Bank and UTI Bank. The exchange is talking with some leading assayers such as SGS India, Geo-Chem Laboratories, Dr Amin Superintendents and Surveyors, Calib Brett and Stewart for commodities certification. The FMC has accorded in principle approval for the four national level multi commodity exchanges in the country i.e. National Board of Trade (NBOT), Multi Commodity Exchange of India (MCX), National Commodity and Derivatives Exchange of India Ltd (NCDEX) and National Multi Commodity Exchange of India (NMMC).
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