Financial Daily from THE HINDU group of publications
Tuesday, Aug 10, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 10, 2004 |
||
|
|
||
|
Agri-Biz & Commodities
-
Commodity Exchanges NMCE sees rise in warehouse receipts volume Dhimant Bhatt
Mumbai , Aug. 9 THE volume of warehouse receipts (WR)-based trading on the National Multi-Commodity Exchange (NMCE) has increased rapidly in the recent past. "Central Warehousing Corporation (CWC), lead promoter of NMCE, has so far issued about 5,000 WRs and about 3,000 people have changed hands," Mr Kailash Gupta, Managing Director of NMCE told Business Line. "We expect volumes on NMCE to rise exponentially. A number of banks have approached the exchange for offering their loan products against WRs," he said. These include Punjab National Bank (PNB), HDFC bank, ING Vaishya and Federal Bank. NMCE has developed commodity trading at Quixotic Quotes (a Srinagar-based terminal) first, to use HDFC Bank's new product for WRs. Mr Gupta said: "Quixotic Quotes buys short delivery contracts and simultaneously sells forward delivery contracts, which is called swap or spread. The spread between the short and forward is approx 3.5 per cent to 4 per cent per month in rubber and approximately 2 per cent per month in black pepper on NMCE." The yields are achieved by investing in WRs of rubber and pepper where risk of quality, shortage in weight and lack of scientific preservation in storage is taken care of by CWC, he said.
More Stories on : Commodity Exchanges
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
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
|