Financial Daily from THE HINDU group of publications
Thursday, Feb 26, 2004

Cross Currency

Group Sites

Agri-Biz & Commodities - Commodity Exchanges

NCDEX completes first demat delivery

Our Bureau

Mumbai , Feb. 25

THE National Commodity & Derivatives Exchange Ltd (NCDEX) has successfully facilitated the first settlement of trade in demat form for commodities on February 24.

NCDEX is the first to pioneer the concept of delivery of commodities through the demat mode.

For this purpose, NCDEX has entered into agreement with National Securities Depository Ltd (NSDL) and Karvy Consultants Ltd, who are its registrars.

On the expiry of the futures contract on February 20, NCDEX had matched instructions for delivery.

"The electronic delivery of commodities, being a trail blazer in commodity market, marks a major milestone not only for NCDEX but to the entire country.

The successful completion of this delivery in commodities at our exchange proves that the novel experiment, which we initiated in the country and for the first time perhaps in the entire world, will strengthen the exchange in its delivery processes," said Mr P.H. Ravikumar, Managing Director of NCDEX.

Traditionally, matching of such delivery instructions are carried out through exchange of warehouse receipts.

But on NCDEX platform, the delivery was effected through the demat process, which is essentially an electronic mode of settlement.

The process involved debiting the commodity demat account of the seller and crediting the demat account of the buyer for the delivery transaction.

"The Indian commodity market is globally connected given the direct correlation between international market movements in commodity prices and local prices.

The evening session, overlapping with the trading hours of important commodity exchanges in Europe and the US would enable our trading members to take advantage of this relationship and avail of the best prices across exchanges," added Mr Ravikumar.

More Stories on : Commodity Exchanges

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NCDEX completes first demat delivery

Kohinoor basmati to be available on
Rubber market hits new high
Maharashtra hikes sugar export subsidy
Mumbai Customs sells 3,671 kg seized silver
Non-availability of ships hits corn exports
Cotton industry facing shortage of quality seeds
S. America slowly challenging US dominance in soya output
Palm oil tech analysis training
Domestic demand, high price continue to mar spices export
Vizag farmers storm Collectorate, stage demo

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line