India's leading agriculture commodity exchange, the National Commodity & Derivatives Exchange (NCDEX), has decided to acquire around a 20 per cent stake in a new commodities and financial derivatives exchange being set up in Sri Lanka, subject to regulatory and governmental approvals. The move aims to deepen NCDEX's footprint in the financial ecosystem of its neighbouring country.
'Market momentum and investor interest are at unprecedented levels, making this the opportune moment.'
The Securities and Exchange Board of India (Sebi) on Tuesday announced that the top 500 stocks will be eligible for the same-day settlement cycle (T+0) in a phased manner. This move is seen as a fresh push to ready the market ecosystem to speed up the settlement cycle, which currently stands at T+1.
As a result, necessary IP rights are not effectively transferred, the "best price" for IP is rarely achieved, and the process itself inhibits the market adoption of new technology based products and hence their companies' economic growth.
Exchange-traded currency derivatives volumes are likely to drop in view of new Reserve Bank of India (RBI) rules, casting a cloud over further participation of retail investors and proprietary traders. There are concerns that existing positions without any underlying exposure will need to be liquidated. Also, weighed down by dollar demand from local oil companies and weakness in its Asian peers, the rupee on Wednesday (April 3) ended at a new closing low of 83.44 versus the US currency.
India's leading commodity exchange, National Commodity and Derivatives Exchange (NCDEX), and private weather forecasting company Skymet took a significant step towards launching the country's first tradeable weather index on Monday (August 14) by entering into an agreement to deepen their understanding of the impact that weather has on agricultural commodities. The memorandum of understanding (MoU) between NCDEX and Skymet is a profound step in the direction of linking farmers with the weather in a scientific way, according to an official statement. Sources indicate that NCDEX and Skymet will conduct workshops and seminars across the country to educate farmers about how they can scientifically use weather forecasts to hedge risks.
The men with guns tend to know little finance, and establishing such a conspiracy then involves leakage of information, which is also dangerous, Ajay Shah points out.
After a gap of more than 13 years, the National Commodity and Derivatives Exchange (NCDEX) is all set to launch a futures contract in groundnut (in shell) to fill a void in oilseeds complex futures because of a ban in several high-volume commodities.
While NSE is exploring 8-10 new agri-commodities, BSE is eyeing as many as 15, most of which aren't traded on any other online derivative exchange in India.
Against the backdrop of a nearly four-hour outage at the National Stock Exchange last month, an RBI article on Friday suggested allowing trading of benchmarks Nifty and Sensex on all stock exchanges. Trading was halted at the NSE for nearly four hours on February 24, reportedly due to telecom links failure leading to unavailability of the online risk management system of the NSE Clearing Ltd (NCL). NCL, a wholly-owned subsidiary of NSE, is responsible for clearing and settlement of all trades executed on the exchange, according to the article.
It is the biggest issue we have ever faced in the securities market, where a sensitive and systemically important institution and first-line regulator was not only exploited by unscrupulous elements but functioned like a private fief, points out Debashis Basu.
In Indian context, among top gainers on the spot National Commodity and Derivatives Exchange, is coriander that saw its price moving up nearly 38 per cent (year-to-date, or YTD).
Financial substitutes for gold are key to addressing the pressure from large imports.
The rot is is not limited to Chitra Ramkrishna and the yogi, observed Debashis Basu.
The exchange cited issues with its telecom service providers that prevented stocks and index quotations from getting updated.
The new contracts will be denominated in US dollars and settled in cash.
The Bombay Stock Exchange and Foreign Exchange market will remain closed today due to a terrorist attack in Mumbai.
In a significant development, India's National Commodity & Derivatives Exchange Limited on Thursday launched its futures contract for Certified Emission Reduction. Forward Markets Commission, chairman, B. C. Khatua inaugurated the launch at NCDEX Exchange Platform. The CER contract of NCDEX will be traded in multiples of one lot of 500 CERs each.
In its order that rejected a proposal by NCDEX to slash the transaction charges in its evening session of trade, FMC said the exchange's settlement guarantee fund has fallen to meagre Rs.5.05 lakh at the end of calendar year 2008. Performance audit done by the auditors at the behest of FMC shows that the exchange also earned an interest of Rs.24.87 crore on this fund during March 2004 to March 2006.
Declining volumes in agriculture commodities are prompting the commodity bourses to aggressively focus on futures trading in bullion, metals and energy products.
India's commodity bourses -- Multi-Commodity Exchange and National Commodity and Derivatives Exchange -- are gearing up to launch futures trading in carbon credits.
The first leap towards an organized derivatives market came in 1848, when the Chicago Board of Trade, the largest derivative exchange in the world, was established. Today, equity and commodity derivative markets are rapidly gaining in size in India. In terms of popularity too, these markets are catching on like a forest fire.
Derivatives exchange DGCX started trading futures for the S&P BSE Sensex
According to the report, benchmark gold ETFs have increased to 2.03 tonnes in May from 1.5 tonnes in the corresponding period last year. Whereas gold ETFs at UTI, Reliance Capital and Kotak remained at 1.32 tonnes, 1.23 tonnes and 0.34 tonnes respectively during May period, it said.
According to officials, after launching sugar successful on its electronic platform, NCDEX Spot has decided to go in for more commodities.
The contract would be quoted in 20-kg lots and have a ticket size of Re 0.10. On the expiry of the contract, Shankar Kapas would be delivered from Rajkot, Kadi, Guntur and Akola.
India's leading agri commodities bourse - the National Commodity and Derivative Exchange - has asked the government to permit banks to hedge at domestic commodity exchanges like international bourses.
Karvy group's commodity broking arm, too, is facing a liquidity crisis because of some issues related to NCDEX, said people in the know.
India's National Stock Exchange has emerged as the fastest-growing bourse among the world's ten largest derivative exchanges as its total traded volumes nearly doubled in 2007. NSE registered a growth of 95.32 per cent in its F&O volume in 2007 to close to 380 million as against about 194 million in 2006. NSE's growth was the quickest among the ten largest derivative exchanges, followed by 50.36 per cent increase in trading volumes at Bolsa de Mercadorias & Futuros of Brazil.
It is an Internet-based government regulated derivatives exchange where traders can hedge against or speculate on economic events and price movements.
The 5 per cent equity investment is the maximum equity interest permitted to foreign investors in derivative exchanges
Commodity market regulator Forward Markets Commission may not allow futures trading in cement.
India's largest agri commodity bourse - the National Commodities and Derivatives Exchange - plans to launch futures trading in coal soon.
The Central government's decision to ban futures trading in several commodities has not deterred the firms from going in for a big awareness drive in Punjab, India's wheat bowl.
In an effort to boost commodity trading in the country, the much-awaited amendments to the Forward Contract and Regulations Act of 1952 will happen during the Budget session of the Parliament.
Intercontinental Exchange, which trades in energy derivatives, is in talks to buy ICICI Bank's holding in the National Commodities and Derivative Exchange.
India's leading agri commodity bourse - the National Commodity and Derivatives Exchange said on Monday that its trading volumes have been hit by the ban on futures trading in pulses, wheat and rice.
Reliance Industries Chairman Mukesh Ambani has said that the company will use the polymer futures platform to hedge its risk because of price volatility in oil.
Experts like National Commodity and Derivatives Exchange Managing Director and CEO P H Ravikumar feel that the commodities market will steal the thunder in the coming days. The next bull run is not in stocks but in commodities, he said.
The National Commodity and Derivatives Exchange Ltd plans to rope in oil companies like Indian Oil Corporation and Reliance Industries Ltd to boost Brent crude futures trading on the bourse.
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