Kochi, Oct 2
Reliance Money plans to be the largest player, at least as big as the next four companies in the commodities broking space, according to Mr Gurmeet Singh, Product Head (Commodities).
Speaking at `Arthanomics', the annual finance seminar of the Indian Institute of Management-Kozhikode, he said that the Indian commodities markets has a long way to go as 90 per cent of volumes still come from speculation and a few players control the market.
Since a lot of money has been lost in commodities markets in recent times, there is a need for a well-designed product to bring back investor confidence, he said.
To take participation to the next level, it is imperative to build awareness among retail investors. Further, given the current level of maturity, the dealer franchisees need to be trained before the knowledge can percolate down to every participant.
He added that it was especially important for farmers to be educated about commodity trading, since they are the primary stakeholders, according to an institute release.
The seminar on `Going Long on India: Opportunities and Risks' had Reliance Money, a part of the Anil Dhirubhai Ambani Group, as platinum sponsor,
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Dr Vijay Sarathi, Senior Vice-President, Thomas Weisel International, began his address by stating hedge funds are "generally run for rich people in Geneva by rich people in Greenwich."
He provided insights into the characteristics of hedge funds, touching upon the finer points of emerging markets and treasury spreads and the dynamics of the hedge fund industry.
On the necessity of innovative strategies in generating desired returns, he said that hedge funds have a higher probability of generating extreme returns.
Mr Varun Gupta, Executive Manager (Valuations), Deloitte Financial Advisory Services, wound up the day's talks by speaking on `Financing India's Infrastructure Needs'.
He said that India's airport, road, port and power sectors would need about $350 billion over the next decade.While such a large investment cannot be borne by the Government alone, public-private partnership is seen as the most feasible alternative.Off$hoRe Bazaar, an offshore trading game conducted by Reliance Money and the institute, was a pilot run for the trading portal that Reliance Money is going to roll out in the market soon.It will allow Indian retail investors to trade in offshore commodities, forex and other instruments.The contest saw participation of 400 teams from 18 of India's top business schools, with entries received from institutes in Singapore and Dubai as well.The first prize went to Mr Ajay Mishra and Mr Manoj Sinha of IIM-Kozhikode, who made a profit of $58,000 on the given notional trading amount of $25,000.