NCDEX to set up spot markets
National Commodities and Derivatives Exchange Ltd has planned to set up spot markets in the country, which are expected to be operational over the next 24 months.
By PTI |
CHENNAI: In an effort to attract farmers, National Commodities and Derivatives Exchange Ltd has planned to set up spot markets in the country, which are expected to be operational over the next 24 months.
"Titled NCDEX Spot Exchange Ltd, these spot markets will be 100 per cent subsidiary of NCDEX and will cater to commodity trading mainly to help farmers get transparent prices for their produce," NCDEX CEO and Chairman R Ramaseshan said here.
Initially, these Spot Exchanges will be set up in Maharashtra, Karnataka, Kerala and Bihar by October this year and NCDEX was hoping to cover the major cities across the country over the next 24 months, he said.
On why Tamil Nadu and Andhra Pradesh have been left out in the initial stages of setting up such spot markets, Ramaseshan said, "Tamil Nadu and Andhra Pradesh have not amended the APMC (Agriculture Produce Marketing Committee) rules while Karnataka and Maharashtra have implemented it."
"We have taken licence in Maharashtra for Spot Market and are currently holding talks in Karnataka and Bihar," he said.
NCDEX Spot Exchange is floated with an authorised capital of Rs 9 crore and a paid up capital of Rs 5 lakh. It is the fully owned subsidiary of the Rs 900 million NCDEX, Ramaseshan said.
Ramaseshan was here for a workshop organised by city-based Institute of Financial Management and Research.
The workshop was aimed at creating a better understanding of the futures market.
"Titled NCDEX Spot Exchange Ltd, these spot markets will be 100 per cent subsidiary of NCDEX and will cater to commodity trading mainly to help farmers get transparent prices for their produce," NCDEX CEO and Chairman R Ramaseshan said here.
Initially, these Spot Exchanges will be set up in Maharashtra, Karnataka, Kerala and Bihar by October this year and NCDEX was hoping to cover the major cities across the country over the next 24 months, he said.
On why Tamil Nadu and Andhra Pradesh have been left out in the initial stages of setting up such spot markets, Ramaseshan said, "Tamil Nadu and Andhra Pradesh have not amended the APMC (Agriculture Produce Marketing Committee) rules while Karnataka and Maharashtra have implemented it."
"We have taken licence in Maharashtra for Spot Market and are currently holding talks in Karnataka and Bihar," he said.
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The current prevailing situation in agricultural product market is against the farmers because of lack of transparency in trade, he said, adding an electronic exchange would help them (farmers) know prices at different markets and accordingly engage in trade.NCDEX Spot Exchange is floated with an authorised capital of Rs 9 crore and a paid up capital of Rs 5 lakh. It is the fully owned subsidiary of the Rs 900 million NCDEX, Ramaseshan said.
Ramaseshan was here for a workshop organised by city-based Institute of Financial Management and Research.
The workshop was aimed at creating a better understanding of the futures market.
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"The objective of this initiative was to spread awareness about the concept of hedging. It is important for market participants to have an understanding about three things -- functions of the exchange, role of members of exchange and more importantly how to manage price risk by trading on exchanges through their members," he said.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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