Commodities

‘Knowledge of commodities markets crucial’

Our Bureau Visakhapatnam | Updated on November 12, 2019 Published on November 12, 2019

At a lecture organised by the BL Club, commodities market expert Srikanth Koundinya explains the features of the markets to students of Gayatri Vidya Parishad PG College in Visakhapatnam on Tuesday   -  CV Subrahmanyam

Students of commerce, management and other disciplines should familiarise themselves with commodities markets as it will stand them in good stead in life, according to Srikanth Koundinya, a MCX commodities market expert.

He was addressing the students of Gayatri Vidya Parishad PG College here on Tuesday, as part of a three-day lecture series organised by the BL Club in the city. The other educational institutions are Gitam University, MVGR College, Samata PG College, Integral Institute of Advanced Management, Vignan Institute of Technology and Sun Institute of Technology and Management.

He said the size of the commodities market in India was ₹25,000 crore per day conducted in five major commodities exchanges. He then went on to explain the basics of trading on the commodities exchanges, and how commodities contracts are essential for price discovery and price management. “The commodities exchanges provide a real-time electronic trading platform and bring together the buyers and sellers,” he explained to the students. They pave the way for efficient price discovery.

Hedging risks

He then explained about hedging risks on the exchanges and how they are regulated by the SEBI. He also spoke about dispute redressal through arbitration.

Srikanth Koundinya said there were 76 exchanges in the world and all of them have websites. “Spend sometime on these sites and they have a wealth of information. It will sharpen your intellect and you will enter the fascinating world of commodities,” he told the students.

Published on November 12, 2019
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