abhishreshthaa
Abhijeet S
An Overview
Agriculture is a key sector in the Indian economy.
A key aspect of the process of strengthening agricultural markets is the question of obtaining efficient derivatives markets for commodities.
History
The first derivative market was set up in Mumbai in 1975, where cotton futures was traded.
This was followed by establishment of futures markets in edible oilseeds complex, raw jute and jute goods and bullion.
Forward Contracts (Regulation) Act was enacted in 1952
The Forwards Markets Commission (FMC) was established in 1953 under the Ministry of Consumer Affairs and Public Distribution.
Forward Markets Commission was set up in 1953.
By 2002, India had around 20 commodity exchanges trading around 42 commodities
The commodity future exchanges have so far been a failure :-
Low liquidity
Inefficient clearing &settlement Procedure
Inadequate infrastructure
Logistics
Commodities Futures
Presently futures trading is permitted in all the commodities.
Trading is taking place in about 78 commodities in 25 exchanges
The govt. has recently allowed four national level multi-commodity exchanges to trade in all permitted commodities.
The “Forward Markets Commission” (FMC) is the regulatory body for commodity futures/forward trade in India.
Agriculture is a key sector in the Indian economy.
A key aspect of the process of strengthening agricultural markets is the question of obtaining efficient derivatives markets for commodities.
History
The first derivative market was set up in Mumbai in 1975, where cotton futures was traded.
This was followed by establishment of futures markets in edible oilseeds complex, raw jute and jute goods and bullion.
Forward Contracts (Regulation) Act was enacted in 1952
The Forwards Markets Commission (FMC) was established in 1953 under the Ministry of Consumer Affairs and Public Distribution.
Forward Markets Commission was set up in 1953.
By 2002, India had around 20 commodity exchanges trading around 42 commodities
The commodity future exchanges have so far been a failure :-
Low liquidity
Inefficient clearing &settlement Procedure
Inadequate infrastructure
Logistics
Commodities Futures
Presently futures trading is permitted in all the commodities.
Trading is taking place in about 78 commodities in 25 exchanges
The govt. has recently allowed four national level multi-commodity exchanges to trade in all permitted commodities.
The “Forward Markets Commission” (FMC) is the regulatory body for commodity futures/forward trade in India.