Abstract:
National Commodity and Derivatives Exchange Limited is the only commodity exchange of India which is promoted by national level institutions like NABARD, NSE and LIC. This exchange carries out commodity trade of agricultural commodities, precious metals, base metals, ferrous metals, polymer products and energy commodities.National Commodity and Derivatives Exchange Limited, which is also known as NCDEX, was established by Companies Act, 1956, in the year 2003. Although this exchange was set up on 23rd April, 2003, it started its' operations from 15th December, 2003.
Operations of NCDEX
National Commodity and Derivatives Exchange Limited carries out commodity trading at national level. This Mumbai based Commodity Exchange of India operates through 550 centres.The exchange provides on line commodity trading facility.It is independently managed by a Board of Directors. But, it works under the supervision of Forward Markets Commission. The National Commodity and Derivatives Exchange Limited, is bound to abide different laws and acts. Some of these Acts are Forward Contracts(Regulation)Act, Stamp Act, Companies Act and Contract Act.
Commodities traded in NCDEX
National Commodity and Derivatives Exchange Limited is a multi commodity exchange. It facilitates commodity trading of Agricultural Commodities like cashew, barley, sugar, coffee, cotton; Precious Metals like gold and silver; Base Metals like aluminium ingot, nickel cathode; Ferrous Metals like sponge iron; Energy Products like furnace oil, brent crude oil and Polymer Products like Polypropylene.Promoters of NCDEX
One unique characteristics of National Commodity and Derivatives Exchange Limited is that, it is the only commodity exchange of India, which is promoted by institutions of national level. As the National Commodity and Derivatives Exchange Limited, is promoted by institutions like NABARD(National Bank for Agriculture and Rural Development), NSE(National Stock Exchange)and LIC(Life Insurance Corporation of India), it is able to offer certain benefits, which the other commodity exchanges fail to provide.The Key Shareholders of National Commodity and Derivatives Exchange Limited are:
- ICE(Intercontinental Exchange)
- CRISIL (Credit Rating Information Services of India Limited)
- Canara Bank
- Punjab National Bank
- Glodman Sachs
- IFFCO(Indian Farmers Fertilizer Cooperative Limited)
