sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Forex »
 Perils of an ad hoc forex policy
 Rupee depreciated by 17 paise to Rs 45.62 a dollar in early trade
 Rupee strengthened by 7 paise against dollar
 Rupee up by 4 paise against dollar in early trade
 Rupee falls by 18 paise at 4-week low against dollar
 Rupee drops on weak shares; inflation eyed
 Rupee raises 6 paise against dollar in early trade
 Rupee among most traded in futures market
 Indian rupee gain 12 paise against US dollar
 Rupee marginally rise up by 1 paise against US dollar
 Rupee drops tracking euro, choppy shares

Commexes to use spot prices for futures trade
June, 23rd 2008

Trading on agri-commodity futures in India is set to become more transparent as the commodity exchanges in India are planning to use prices on spot exchange as settlement price for futures in farm goods. MCX and NCDEX, the two major commodity trading platforms in India, are going ahead with launching of their spot exchanges for agricultural commodities.

"From December onwards MCX will start using the settlement prices on National Spot Exchange (NSEL) as a benchmark for settlement of futures contract," NSEL CEO and MD Anjani Sinha told ET . Slowly, settlement of all futures contracts on MCX will be done using its spot exchange price as the benchmark.

Within a fortnight of spot exchange launch, more than 500 traders and corporates from across the country have showed their interest in its spot exchange membership and 155 completed application forms is already submitted for enrolment as its trading-cum-clearing member within a fortnight of spot exchange launch.

Exchange officials said that most of the brokers active in futures exchanges are applying for membership in National Spot Exchange, as it provides a hassle free platform for cash future arbitrage in agri-commodities. Trading on the NSEL will commence from August onwards. Traders and brokers feel that price rigging and cartelisation in commodity futures will not be possible once a spot exchange benchmark is put in place.

Karvy Comtrades Ashok Mittal said, "Using spot exchange prices as benchmark for settlement of farm futures will deepen this futures segment as more genuine hedgers will enter the markets." Traders said once the spot exchange is in place, farmers would be able to benefit from futures market by selling in localised spot contracts, which will have strong linkage to the futures contracts.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions