History
The NCDEX in simple is the acronym for the National commodities and Derivatives Exchange Limited. It is one of the country's largest technology driven and most approved commodities exchange which was started back early in 2003. It was initially founded by leading national financial institutions and companies such as Life Insurance Corporation of India (LIC), National Stock Exchange of India Limited (NSE), National Bank for Agriculture and Rural Development (NABARD) and ICICI Bank Limited (ICICI) and these were known as the initial shareholders who promoted the NCDEX.Later on there were additions in the list of the share holders which extends to IDFC Private Equity Fund III, Oman India Joint Investment Fund, Build India Capital Advisors LLP, Jaypee Capital Services Limited, Intercontinental Exchange (ICE), Goldman Sachs, Punjab National Bank (PNB), Indian Farmers Fertilizer Cooperative Limited (IFFCO), Credit Rating and Information Services India Limited (CRISIL), Canara Bank, Shree Renuka Sugars Limited.
NCDEX is an Online commodity exchange platform that deals with various Agri products and non-agri products. The NCDEX has independent board of directors, is said to be the only commodity exchange that has the privilege of being professionally managed and promoted by the national level institutions. And this indeed offers many benefits to the NCDEX and in return it offers to provide a designated exchange platform for the commodities to the market participants and assures safety to them.
NCDEX is a public limited company incorporated on 23rd of April 2003, formed under the Companies Act of 1956 and had obtained its Certificate of Commencement for Business on 9th May 2003. It had begun its operations from December 15, 2003. It directly comes under the regulatory authority of Forward Markets Commission (FMC) but also is subjected to various other laws like the Forward Contracts (Regulation) Act, Stamp Act, Contract Act , Companies Act and various other legal bodies.
As per the recent data, the NCDEX offers 31 contracts of commodity trading of which 1 is polymer and 2 other metals ,23 are agricultural based commodities, 3 are precious metals , 2 energy resources. NCDEX offers commodity exchange contracts in the following categories:
• Agriculture
• Precious metals
• Polymers
• Base and ferrous metals
• Energy
In detail the NCDEX offers the following products for the purpose of commodity exchange.
AGRI PRODUCTS
Cereals and Pulses:
• MT Maize - Feed/Industrial Grade
• Bajra
• Barley
• Wheat
• Channa
• Channa 1
Fibres:
• 29 mm Cotton
• V-797 kapas
• Shankar kapas
Guar Complex:
• MT Guar Gum
• Guar Seed 10
• Guar Seeds
NON AGRI PRODUCTS
Metals:
• Steel long Commercial
• Copper
• Steel
Precious Metals:
• Gold Hedge
• Gold Hedge (100gms)
• Silver Hedge
• Gold
• Silver
Energy:
• Brent Crude Oil
• Crude Oil
Others:
• Polyvinyl Chloride
NCDEX introduced DHAANYA in November 2010
The NCDEX introduced DHAANYA in November 2010, a bench mark in agricultural commodity index that provides the market participants with real time information regarding the listed products and their up-to date prices. DHAANYA is a value-weighted index computed in real time obtaining the prices of the ten most liquid commodity derivatives currently traded on the NCDEX platform, aiming to provide a reliable benchmark for India's agro based commodities.
When the current futures contracts held in the index approaches expiration they are rolled over to the next month and thus also known as the rolling index, apart from this The NCDEX also provides a bench mark called the 'GOLD HEDGE', a transparent value benchmark of gold to the market participants. The contract, GOLDHEDGE was made available for trading from 16th of January 2014. The one-kg gold hedge contract offers to the investors a transparent platform that can be trusted along with the exposure towards the international markets. The final settlement prices are arrived through taking gold price in dollar terms into account along with the value of rupee against the dollar value and the conversion ratio. The leading top 5 commodities, in terms of volume traded at the NCDEX are Soya bean, Soya oil, Channa, RM seed and Castor Seed. The registered office of NCDEX is situated in Mumbai and caters to the needs of their investors all over the country through its branch offices at Indore, Hyderabad, Kolkata, Delhi, Ahmadabad, and Jaipur.
Contact details:
Website: www.ncdex.com
Registered Office:National Commodity & Derivatives Exchange
1st Floor, Akruti Corporate Park, Near G.E. Garden, LBS Road,
Kanjurmarg West,
Mumbai 400078, India.
Phone: +91-22-6640 6789,
Fax: +91-22-6640 6899
National Commodity & Derivatives Exchange
Gayathri Towers, 954,
Appasaheb Marathe Marg,
Prabhadevi, Mumbai 400025
Tel : (+91-22) - 66406789
Fax : (+91-22) - 66406736