NCDEX launches new membership category for forwards segment

MUMBAI: Leading commodity exchange NCDEX today said it has introduced a new membership category called Commodity Participant Members (CPMs), for its soon to be launched forwards segment.

"With exchange traded forwards, we are attempting to reach untapped segments and create value in the agricultural markets. With this new membership category, we will bring national markets to farmers, mandi traders and buyers," NCDEX Managing Director and CEO Samir Shah said, in a release.

Individuals, businesses, co-operative societies and Farmer Producer Organisations (FPOs) among others, who wish to buy or sell commodities for their business requirements are eligible for this membership which would enable them to trade on the forwards segment, the NCDEX release said.

The minimum networth requirement for a CPM is much lower at Rs 5 lakh and the minimum base capital has been waived off, the release said.

A CPM would be required to pay a one-time admission fee of Rs 50,000 and an annual membership fee of Rs 10,000.

Another concessionary membership called Krishi Bandhu would be given to government certified FPOs, who would be exempted from the minimum networth criteria and their admission fee would be waived, the release said.

FPOs would have to pay only a lower annual membership fee of Rs 5,000. Membership for forwards segment trading would be extended to existing NCDEX and NCDEX Spot members, who may now expand their range of services to include forwards, the release said.