Commodity Trading In India
The Ministry of Consumer Affairs and Public Distribution, Govt. of India supervises the regulatory authority Forward Markets Commission (FMC) which is a statutory authority established in 1953 under Forward Contracts (Regulation) Act. FMC regulates Commodity trading in India.
In India equity trading had always been one of the greatest boosters. But, now a days because of people’s affection towards gold and silver even commodity trading has been increasing. This brings itself to around 3 times the volume of equity traded.
Commodity future is the prediction of a commodity i.e. future supply of a commodity on particular date and price. Contract Expiry date is the predicted future date and the contract size is fixed quantity. Due to the introduction of commodities future the total of retail traders taking part in market has been gradually increasing. In the next 5 years the commodity market is expected to grow by 40%.
The List of exchanges in India are: Bhatinda Om & Oil Exchange Ltd., Batinda., The Bombay Commodity Exchange Ltd.Mumbai, The Rajkot Seeds oil & Bullion Merchants` Association Ltd, The Meerut Agro Commodities Exchange Co. Ltd., Meerut, Ahmedabad Commodity Exchange Ltd., and many more.
The few majors in commodity exchanges are:
MCX(Multi Commodity Exchange of India Ltd.): MCX presents futures trading defined in terms of type of contracts offered in 58 commodities, from various market segments including energy, bullion, iron and non-iron metals, oil seeds, and other agricultural commodities. It is the worlds first and fore most also one and only company acquired ISO 27001:2005 certification
National Multi-Commodity Exchange of India Limited (NMCE): It was declared a National status in November 2002 on permanent basis by Govt. of India. And is considered to be first De-Mutualised Electronic Exchange
National Commodity & Derivatives Exchange Limited (NCDEX): It is a private limited company which has obtained Certificate for Commencement of Business in Mat 2003 and is online commodity exchange based in India.
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