NCDEX spot markets to have bullion too
National Commodity and Derivatives Exchange (NCDEX) has chalked out plans to introduce bullion at its soon-to-be-launched spot markets across the country.
By Maulik Pathak, TNN |
AHMEDABAD: National Commodity and Derivatives Exchange (NCDEX) has chalked out plans to introduce bullion at its soon-to-be-launched spot markets across the country. The spot markets will be launched under a new company — NCDEX Spot Exchange and the exchange is hopeful that the first project will come up within a month.
The floods in Bihar have played a spoilsport, delaying NCDEX’s plans of launching a spot market. “We are hopeful of launching spot by this Diwali,” said chief business officer, NCDEX, Shrikant Subbarayan. “We are also in close talks with states like Rajasthan, Madhya Pradesh and Gujarat,” said Mr Subbarayan.
One of the products will be bullion, he assured. Besides the exchange is also considering Andhra Pradesh, Karnataka, Kerala and also Bihar for spot markets. Traders can trade directly and the prices will follow international prices.
Subbarayan added that there are only two physical delivery centres at present which include Ahmedabad and Mumbai.
“We have got recommendations that we need at least 20 physical delivery centres across the country.
All we need to do is tie up with a bank to use its vaults and that will enable us to give physical deliveries,” he said.
The exchange is awaiting modification in Forward Contracts Regulation Act (FCRA) so they can introduce weather and index trading also.
The floods in Bihar have played a spoilsport, delaying NCDEX’s plans of launching a spot market. “We are hopeful of launching spot by this Diwali,” said chief business officer, NCDEX, Shrikant Subbarayan. “We are also in close talks with states like Rajasthan, Madhya Pradesh and Gujarat,” said Mr Subbarayan.
One of the products will be bullion, he assured. Besides the exchange is also considering Andhra Pradesh, Karnataka, Kerala and also Bihar for spot markets. Traders can trade directly and the prices will follow international prices.
Subbarayan added that there are only two physical delivery centres at present which include Ahmedabad and Mumbai.
“We have got recommendations that we need at least 20 physical delivery centres across the country.
All we need to do is tie up with a bank to use its vaults and that will enable us to give physical deliveries,” he said.
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The daily turnover of NCDEX is currently about Rs 2,500 crore, a sharp decline from about Rs 4,500-5,000 crore last year. “We got too much business too quickly. De-listing of several commodities like wheat, margin pressures have been instrumental for the decline. The confidence has to come back,” Mr Subbarayan said. The exchange is awaiting modification in Forward Contracts Regulation Act (FCRA) so they can introduce weather and index trading also.
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