The National Commodity & Derivatives Exchange Limited (NCDEX or the Exchange) is a prominent Indian agricultural product exchange holding a significant market share in the agricultural products segment. Governed by a Board of Directors with extensive experience in the agricultural products market, NCDEX is dedicated to offering an exchange platform for market participants interested in trading agricultural products. Established as a public limited company on 23 April 2003 under the Companies Act 1956, NCDEX commenced its operations on 15 December 2003.
The NCDEX operates under the regulatory oversight of the Securities and Exchange Board of India (SEBI). Governed by a range of laws, including the Securities Contracts (Regulation) Act, of 1956, the Companies Act, the Contract Act, and other relevant legislations specified in the Indian Penal Code, the exchange ensures compliance with established regulations. The NCDEX’s headquarters are situated in Mumbai, providing facilities to its members through centers distributed across various locations in India.
SEBI’s regulation of NCDEX encompasses various aspects, including:
SEBI’s rigorous regulatory oversight of NCDEX contributes to the stability, efficiency, and transparency of India’s commodity markets, safeguarding the interests of market participants and fostering a fair and competitive trading environment for agricultural commodities, metals, and energy products.
As of December 2017, the National Commodity & Derivatives Exchange Limited offers trading opportunities for 29 distinct agricultural commodities. These commodities, constituting a significant portion of India’s global trade, encompass pulses, spices, and guar. Notably, these particular commodities hold economic importance for India, yet they are not traded on major international exchanges.
The National Commodity & Derivatives Exchange Limited boasts a diverse range of approved agricultural commodities, totaling 23—the highest among exchanges. Among these commodities are items like pulses, spices, and guar. Notably, these commodities hold economic significance for India and constitute a vital component of the country’s global trade. It’s worth mentioning that some of these, such as pulses and guar, are not commonly traded on global platforms, making them uniquely relevant to India’s economic landscape.
The NCDEX AGRIDEX index monitors the performance of ten highly liquid commodities traded on the NCDEX, representing the country’s inaugural return-based agricultural futures index. This index comprises a basket of ten commodities chosen for their liquidity on the exchange, and it serves as a benchmark for replicating the performance of these underlying commodities.
The value of the NCDEX AGRIDEX is determined by both spot and future prices of the following ten commodities: soybean, chana, coriander, cottonseed oilcake, guar gum, guar seed, mustard seed, refined soy oil, castor seed, and jeera. Covering a spectrum of agricultural products from both the Kharif and Rabi seasons, this index provides a comprehensive reference for prices. Additionally, by offering insights into anticipated product prices, AGRIDEX aids participants in effectively hedging their commodity-related risks.
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Indian Companies Act | Indian Penal Code |
The National Commodity and Derivatives Exchange (NCDEX) is an Indian commodity exchange that specialises in trading agricultural products.
National Commodity & Derivatives Exchange Limited (NCDEX) is a nationally recognised, technology-driven online stock exchange with a professional management team and an independent Board of Directors.
The Securities and Exchange Board of India regulated NCDEX.
The buying and selling of various commodities and the derivative goods derived from them is known as commodity trading whereas equity is the term used to describe your ownership interest in a company, which is represented by a proportionate share of the firm's revenue and net worth.
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