National Commodity and Derivatives Exchange

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National Commodity & Derivatives Exchange Ltd.
Type Public
Industry Business services
Founded 15 December 2003
Headquarters Mumbai, Maharashtra, India
Key people Samir Shah, MD & CEO (in charge)
Products Options, futures
Website www.ncdex.com

National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally managed online multi commodity exchange based in India. It is a national level, technology driven de-mutualised on-line commodity exchange with an independent Board of Directors and professional management - both not having any vested interest in commodity markets. It is committed to provide a world-class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency. It is a public limited company incorporated on 23 April 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of Business on 9 May 2003. It has commenced its operations on 15 December 2003. NCDEX is the only commodity exchange in the country promoted by national institutions. The institutional promoters and shareholders of NCDEX bring institutional experience, national contacts, technology, and risk management experience. NCDEX is regulated by the Forward Markets Commission (FMC). NCDEX is also subject to the Companies Act 2013, Stamp Act, Contracts Act, Forward Commission (Regulation) Act, and various other laws.

Shareholder consortium[edit]

Key facts[edit]

  • NCDEX had 848 registered members and client base of @ 20 Lakh as of 31 July 2013
  • Trading conducted on more than 49,000 terminals across 1,000 centers in India as of 31 July 2013
  • Facilitates deliveries of commodities through a network of over 594 accredited warehouses through 8 Warehouse Service Providers with holding capacity of around 1.5 million tonnes
  • Average deliveries of 1 lakh MT at every contract expiry; Average delivery ratio for Q1 of financial year 2013-14 is 98%
  • NCDEX has offices in Mumbai, Delhi, Ahmedabad, Indore, Hyderabad, Jaipur, and Kolkata.[3]

Products and services[edit]

  • NCDEX offers futures trading in 31 agricultural and non-agricultural commodities.
  • NCDEX also offers as an information product, an agricultural commodity index. This is a value-weighted index called DHAANYA and is computed in real time using the prices of the ten most liquid commodity futures traded on the NCDEX platform. Dhaanya aims to provide a reliable benchmark for India's agri-commodities.
  • Introduced N-Charts – a free, web-based charting tool provided to users for technical analysis.
  • Launched COMTRACK® - a proprietary electronic warehouse accounting system
  • Exchange for Physicals - recently announced EFP (Exchange for Physicals) facility in 18 contracts traded on the NCDEX platform, which will help trade participants in addressing their counterparty and business risks inherent in the bilateral transactions in the physical market.
  • Launched GOLD HEDGE, a transparent price benchmark of gold to the consumer. The contract, GOLDHEDGE, is available for trading from Jan 16, 2014. The one-kg gold hedge contract provides a transparent platform for investors with exposure to the international markets. The final settlement prices is arrived at after taking into account the gold price in dollar terms, rupee value against dollar and the conversion ratio.

References[edit]

  1. ^ "NSE Appoints JM fin to Shed Excess NCDEX Pie", Economic Times
  2. ^ "Introduction", Renuka Sugars
  3. ^ "Contact Us: Offices", National Commodity and Derivatives Exchange