National Commodity and Derivatives Exchange

National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity exchange based in India. It has an independent board of directors and professional management, who have interest in commodity markets. It provides a commodity exchange platform for market participants to trade in commodity derivatives. It is a public limited company, incorporated on 23 April 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of Business on 9 May 2003, and began operations on 15 December 2003. NCDEX is the only commodity exchange in the country promoted by national institutions. NCDEX is regulated by the [Securities and Exchange Board of India] (SEBI), and is subject to the Companies Act 2013, Stamp Act, Contracts Act, Forward Commission (Regulation) Act, and various other laws.

Shareholder consortium

• National Stock Exchange of India (NSE)
• Life Insurance Corporation of India (LIC)
• National Bank for Agriculture and Rural Development (NABARD)
• CRISIL Limited (formerly Credit Rating Information Services of India Limited)
• Goldman Sachs
• Indian Farmers Fertiliser Cooperative Limited (IFFCO)
• Oman India Joint Investment Fund
• Build India Capital Advisors LLP
• Canara Bank
• IDFC Private Equity Fund III
• IntercontinentalExchange (ICE)
• Jaypee Capital Services Limited^[1]
• Punjab National Bank (PNB)
• Shree Renuka Sugars Limited^[2]
• Star Agriwarehousing and Collateral Management Ltd.

Key facts

• NCDEX had 848 registered members and client base of @ 20 Lakh as of 31 July 2013.
• It offers trading on more than 49,000 terminals across 1,000 centers in India as of 31 July 2013.
• It facilitates deliveries of commodities through a network of over 594 accredited warehouses through eight warehouse service providers, with holding capacity of around 1.5 million tonnes.
• It offers average deliveries of 1 lakh MT at every contract expiry. Average delivery ratio for Q1 of 2013-14 is 98%.
• NCDEX has offices in Mumbai, Delhi, Ahmedabad, Indore, Hyderabad, Jaipur, and Kolkata.^[3]

Products and services

• NCDEX offers futures trading in 31 agricultural and non-agricultural commodities.
• NCDEX also offers as an information product, an agricultural commodity index. This is a value-weighted index called DHAANYA and is computed in real time using the prices of the ten most liquid commodity futures traded on the NCDEX platform. Dhaanya aims to provide a reliable benchmark for India's agri-commodities.
• Introduced N-Charts – a free, web-based charting tool provided to users for technical analysis.
• Launched COMTRACK® - a proprietary electronic warehouse accounting system
• Exchange for Physicals - recently announced EFP (Exchange for Physicals) facility in 18 contracts traded on the NCDEX platform, which they intend to help trade participants address counter-party and business risks inherent in bilateral transactions in the physical market.
• Launched GOLD HEDGE, a transparent price benchmark of gold to the consumer. The contract, GOLDHEDGE, is available for trading from Jan 16, 2014. The one-kg gold hedge contract provides a transparent platform for investors with exposure to the international markets. The final settlement prices is arrived at after taking into account the gold price in dollar terms, rupee value against dollar and the conversion ratio.
• Launched Forward market on 25 September 2014 .

References