The National Commodity and Derivatives Exchange (NCDEX) is an online multi commodity exchange in India. It is based in Mumbai and was founded in 2003. NCDEX is a public company with equal shareholding from public and private sector institutions. The National Stock Exchange (NSE) and the International Commodity Exchange (ICEX) are its major shareholders.
NCDEX deals in agricultural commodities such as wheat, rice, pulses, oilseeds, spices, coffee, sugar, and cotton. It also has a platform for trading in non-agricultural commodities such as metals, energy, and a variety of other products. NCDEX has a nationwide network of 2,200+ accredited members and 12,000+ registered warehouse service providers.
The exchange offers online trading, clearing, and settlement services and provides a platform for price discovery and risk management. NCDEX has introduced a number of innovations such as electronic trading, online market surveillance system, and a risk management system. It has also launched a mobile trading platform and a products exchange traded fund (ETF).
NCDEX has introduced a number of initiatives to promote commodity derivatives trading among the small and medium enterprises (SMEs). These include the introduction of new products, waiver of membership fees, and provision of financing and risk management facilities. The exchange has also set up an SME cell to provide guidance and support to SMEs.
What are derivative trades?
A derivative trade is an agreement between two parties to buy or sell an asset at a future date and price. The asset can be anything from shares in a company to a commodity such as gold or oil. Derivative trades are used to speculate on future price movements or to hedge against price risk. What are the functions of commodity exchange? The functions of commodity exchange are to provide a marketplace where buyers and sellers can come together to trade commodities, and to set and enforce rules and regulations governing the trading of commodities. Commodity exchanges also provide facilities for the storage and delivery of commodities, and they may provide financing for commodity transactions.
Who is the owner of NCDEX?
NCDEX is a National Spot Exchange Limited (NSEL) promoted by leading national level financial institutions. NCDEX is a public company limited by shares and is registered with the Registrar of Companies, Mumbai. The shareholders of NCDEX include Life Insurance Corporation of India (LIC), National Stock Exchange of India Limited (NSE), National Commodity and Derivatives Exchange Limited (NCDEX), Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Canara Bank. Is NCDEX a private company? Yes, NCDEX is a private company. It is a commodities exchange based in India. How does NCDEX make money? As a futures exchange, NCDEX makes money by charging fees for each transaction that occurs on the exchange. These fees are typically a small percentage of the total value of the transaction, and they are paid by both the buyer and the seller. In addition to transaction fees, NCDEX also charges fees for listing new contracts and for maintaining existing contracts.