Abstract:
The National Commodities Exchange was set up due to the implementation of different economic policies of the Government in Pakistan so that economic growth may be brought about. The NCEL is the biggest trading exchange for futures. Owing to the establishment of the exchange, the export sector in particular has been impacted in a positive manner.The National Commodity Exchange Limited or NCEL, is the only platform, where commodity futures are traded in Pakistan. The commodity exchange was set up as a result of the implementation of the economic reforms in the country in order to boosts investment in Pakistan thereby benefiting the economy of the country in the process.
Major shareholders of National Commodities Exchange Limited:
The main stakeholders of NCEL include:- Islamabad Stock Exchange
- Karachi Stock Exchange
- Lahore Stock Exchange
- Zarai Taraqiati Bank Limited
- Pak Kuwait Investment Company Private Limited.
National Commodities Exchange Regulator:
The main regulator of the NCEL is Securities And Exchange Commission of Pakistan or SECP.Trading futures on the exchange:
Commodities traded on the exchange include-- Wheat
- Gold
- Rice
- Yarn
- Cotton
Aim of setting up the National Commodities Exchange Limited:
- The National Commodities Exchange Limited was established with an intention of regulating, carrying out trade of contracts pertaining to futures commodity in the domestic commodity markets as well as the global commodity markets worldwide. Export as well as import of these commodities to be traded are also looked into by the NCEL.
- Maintaining integrity in business and trade and preventing conflicts, manipulations are also taken into account by the exchange.
- One of the major benefits of setting up the National Commodities Exchange Limited is that the export activities of the country will get a boost. This would in turn impact the economy in Pakistan positively.
