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The National Commodity and Derivatives Exchange (NCDEX) will relaunch trading in castorseed futures which was suspended after prices shot up sharply in January.
To start with, castorseed contracts expiring in February, March, April and May would be available for trading from Friday. The contract will serve as crucial risk mitigation tool for the castor seed, oil and derivatives’ processors and exporters, who need to hedge their exposure to price risk, said the exchange in a statement on Thursday.
In the absence of futures contract the traders, processors and exporters are left vulnerable to fluctuating prices, it said.
Samir Shah, Managing Director and CEO, NCDEX, said it is indeed heartening to have the regulators confidence and the support of traders.
“We have significantly strengthened risk management framework under the guidance of SEBI and we look forward to the successful re-launch of the castorseed contact,” he added.
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