Racindia

National Commodity & Derivatives Exchange

Type
Online commodity exchange

Founded
Dec 15, 2003

Headquarters
Mumbai, Maharashtra, India

Website
www.ncdex.com

National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity exchange based in India. It was incorporated as a private limited company incorporated on April 23, 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It has commenced its operations on December 15, 2003. NCDEX is a closely held private company which is promoted by national level institutions and has an independent Board of Directors and professionals not having vested interest in commodity markets.

Consortium of Shareholders

• ICICI Bank Limited (ICICI Bank)
• Life Insurance Corporation of India (LIC)
• National Bank for Agriculture and Rural Development (NABARD)
• National Stock Exchange of India (NSE)
• Punjab National Bank (PNB)
• CRISIL Limited (formerly the Credit Rating Information Services of India Limited)
• Indian Farmers Fertiliser Cooperative Limited (IFFCO)
• Canara Bank
• Goldman Sachs

NCDEX is regulated by Forward Market Commission (FMC) in respect of futures trading in commodities. Besides, NCDEX is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations, which impinge on its working. On February 3rd, 2006, the FMC found NCDEX guilty of violating settlement price norms and ordered the exchange to fire one of their executive.

NCDEX is located in Mumbai and offers facilities in more than 550 centres in India.

Commodities Traded

NCDEX currently facilitates trading of 57 commodities -

Agri-based commodities – Castor Seed
Chana
Chilli
Coffee – Arabica, Coffee – Robusta
Cotton Seed Oilcake
Crude Palm Oil
Expeller Mustard Oil
Groundnut (in shell)
Groundnut Expeller Oil
Guar gum
Guar Seeds
Gur, Jeera
Jute sacking bags
Kidney Beans
Indian 28 mm Cotton
Indian 31 mm Cotton
Masoor Grain Bold
Medium Staple Cotton
Mentha Oil
Mulberry Green Cocoons
Mulberry Raw Silk
Rapeseed – Mustard Seed
Pepper
Raw Jute
RBD Palmolein
Refined Soy Oil
Rubber
Sesame Seeds
Soy Bean
Sugar – Small
Sugar – Medium
Turmeric
Urad (Black Matpe)
V-797 Kapas
Yellow Peas
Yellow Red Maize
Yellow Soybean Meal.

Bullion -
Gold 1 KG
Gold 100gm
Silver 30 KG
Silver 5 KG

Energy -
Brent Crude Oil
Furnace Oil
Light Sweet Crude Oil.

Ferrous Metals

- Mild Steel Ingot

Plastics
Polypropylene
Linear Low Density Polyethylene
Polyvinyl Chloride.

Non-ferrous Metals
Aluminum Ingot,
Copper Cathode
Nickel Ingot
Zinc Cathode

Facilities offered

NCDEX also offers as an information product, an agricultural commodity index. This is a composite index, called NCDEXAGRI that convers 20 commodities currently being offered for trading by NCDEX. This is a spot-price based index. NCDEX also offers as an information product, the index futures, called FUTEXAGRI. This is essentially a what-if index. It indicates, that if futures on the index could be traded, then the current FUTEXAGRI value should be the no-arbitrage value for the index futures. However, indexes and index futures are not allowed to be traded under the current regulatory structure. Hence, these are only available for information, as of now.

Retrieved from “http://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchange”
Categories: Commodity exchanges | Economy of India | Economy of Mumbai | Companies established in 2003