Professional Documents
Culture Documents
ON
SUBMITTED TO:
(Academic Coordinator)
SUBMITTED BY:
DIPA SHAH
KEYUR SAVALIA
BHARAT MAHESHWARI
KRISHNA RAJPUT
MITESH SHAH
NIKITA SANGHVI
DATE OF SUBMISSION
An Acknowledgement is the expression of one’s thanks giving to the people who have extended
their help in every possible way. Help is a voluntary fulfillment of duty, which, all the people
mentioned below have performed it to their maximum possible, in a way giving us & our
research the utmost important.
At the onset, we wish to express our gratitude to Dr. Himani Joshi, Academic Coordinator,
Stevens Business School for her keen interest, constant support & help in completing this report
successfully.
We would also like to thanks to the authors, websites for providing us the related information to
our project’s subject.
While we were surveying various web site we came to know the whole commodity
market and the exchange takes place in this market is broadly classify into two principle
categories that is agriculture and non agriculture commodity market.
The first session deals with the significance of commodity market. As commodity market
is the place where 2 parties agree to buy and sell a specified and standardized quantity
of a commodity at a certain time of future at a price agreed upon at the time of
agreement agreed upon irrespective of availing future price.
Following the significance of commodity market is the history of the commodity market.
The root of commodity market is traced from Japan where Japanese merchants used to
store rice in ware houses and later on they have issued „Rice tickets‟. And as the time
passes rice tickets are started to accepted as a currency.
Patterns of exchange that was prevailing in the market which was auction and the
pattern that is currently prevailing in the market which is future is discussed. Major
international and national players are described.
Various national and international markets and their features in brief are described. The
perspective of commodity market in which active and passive mode of commodity
market, volatility, liquidity of commodity market and their relation with economy are
discussed.
A complete working and delivery process of commodity market including various stages
are clearly mentioned with the use of flow chart. Spot trade and future trade are also
explained well.
At the end unresolved issues of commodity market and future prospect of commodity
market is written down.
Whole commodity market is divided into two broad categories those are agriculture
commodities and non agriculture commodities. Agriculture commodities include wheat,
rice, pulses, cereals, edible oils, ground nut etc. Non- agriculture commodities includes
crude oil, non ferrous metals like gold, silver, nickel, copper etc.
We have mainly focused upon the commodity groundnut. What are the essential
features of groundnut as a crop and as a commodity?
This session would broadly deal with groundnut as a commodity, its cropping pattern,
production, major markets and its significance as a commodity traded in exchange.
i. ACKNOWLEDGEMENT 02
1. INTRODUCTION 08
1.1 AN INTRODUCTION
1.2 MARKET
1.3 COMMODITY
1.4 COMMODITY EXCHANGE
2. HISTORY OF EVOLUTION OF COMMODITY MARKET 10
2.1 BRIEF HISTORY
2.2 COMMODITY MARKETS OF WORLD
3. INDIA AND THE COMMODITY MARKET 12
3.1 HISTORY
3.2 PRESENT COMMODITY MARKET
4. NATIONAL LEVEL COMMODITY EXCHANGES IN INDIA 15
4.1 NMCE
4.2 NCDEX
4.3 MCX
4.4 ICEX
4.5 MAJOR REGIONAL COMMODITY EXCHANGES
5. COMMODITIES TRADED IN INDIA 18
5.1 FIBRES AND MANUFACTURERS
5.2 SPICES
5.3 EDIBLE OILSEED AND OIL
5.4 PULSES
5.5 ENERGY PRODUCTS
5.6 VEGETABLE
5.7 METALS
15. CONCLUSION 73
“Organized futures markets in India are now 134 years old, with the first such organization – the
Bombay Cotton Trade Association Ltd. – been set up in 1875. While India was gradually becoming
the largest consumer of gold in the world, a position it still enjoys, futures markets in bullion were
1.1 AN INTRODUCTION
The vast geographical extent of India and her huge population is aptly complemented by
the size of her market. The broadest classification of the Indian Market can be made in
terms of the commodity market and the bond market.
The commodity market in India comprises of all palpable markets that we come across
in our daily lives. Such markets are social institutions that facilitate exchange of goods
for money. The cost of goods is estimated in terms of domestic currency. India
Commodity Market can be subdivided into the following two categories:
• Wholesale Market
• Retail Market
Considering the present growth rate, the total valuation of the Indian Retail Market is
estimated to cross Rs. 10,000 billion by the year 2010. Demand for commodities is likely
to become four times by 2010 than what it was in 2009.
1.2 MARKET
A market is conventionally defined as a place where buyers and sellers meet to
exchange goods or services for a consideration. This consideration is usually money. In
an Information Technology-enabled environment, buyers and sellers from different
locations can transact business in an electronic marketplace. Hence the physical
marketplace is not necessary for the exchange of goods or services for a consideration.
1.3 COMMODITY
A commodity is a product that has commercial value, which can be produced, bought,
sold, and consumed. Commodities are basically the products of the primary sector of an
economy. The primary sector of an economy is concerned with agriculture and
extraction of raw materials such as metals, energy (crude oil, natural gas), etc., which
serve as basic inputs for the secondary sector of the economy.
MINISTRY OF CONSUMER
AFFAIRS, FOOD AND PUBLIC
DISTRIBUTION
FORWARD
MARKET
COMMISION
INDIAN
COMMODITY
EXCHANGE
NATIONAL REGIONAL
EXCHANGE EXCHANGE
20 OTHER
NCDEX MCX NMCEIL ICEX NBOT REGIONAL
EXCHANGES
NMCE is the first demutualised electronic commodity exchange of India granted the
National exchange on Govt. of India and operational since 26th Nov, 2002.
Promoters of NMCE are, Central warehousing corporation (CWC), National Agricultural
Cooperative Marketing Federation of India (NAFED), Gujarat Agro-Industries Corporation
Limited (GAICL), Gujarat state agricultural Marketing Board (GSAMB), National Institute
of Agricultural Marketing (NIAM) and Neptune Overseas Ltd. (NOL). Main equity holders
are PNB.
The Head Office of NMCE is located in Ahmedabad. There are various commodity trades
on NMCE Platform including Agro and non-agro commodities.
NCDEX is a public limited co. incorporated on April 2003 under the Companies Act 1956,
It obtained its certificate for commencement of Business on May 9, 2003. It commenced
its operational on Dec 15, 2003.
Promoters shareholders are: Life Insurance Corporation of India (LIC), National Bank for
Agriculture and Rural Development (NABARD) and National Stock Exchange of India
(NSE) other shareholder of NCDEX are: Canara Bank, CRISIL limited, Goldman Sachs,
Intercontinental Exchange (ICE), Indian farmers fertilizer corporation Ltd (IFFCO) and
Punjab National Bank (PNB).
NCDEX is located in Mumbai and currently facilitates trading in 57 commodities mainly in
Agro product.
They are demutualized, meaning thereby that they are run professionally and
there is separation of management from ownership. The independent
management does not have any trading interest in the commodities dealt with on
the exchange.
They provide online platforms or screen based trading as distinct from the open
outcry systems (ring trading) seen on conventional exchanges. This ensures
transparency in operations as everyone has access to the same information.
They allow trading in a number of commodities and are hence multi-commodity
exchanges.
They are national level exchanges which facilitate trading from anywhere in the
country. This corollary of being an online exchange.
EXCHANGE (SANGI)
• 1. Kapas
• A. V797 Kapas
• 2. Hessian
• 3. Indian Cotton
• A. S06 L S Cotton Ahmedabad
• B. CottonKadi
• C. Indian 31 mm cotton
• D. indian 28 mm cotton
• E. J34 M S Cotton Bhatinda
• F. CottonAbohar
• 4. Sttaple Fibre Yarn
• 5. Sacking
• A. Jute (B twill-665 Gms) - Kollata
• 6. Gram
• A. Gram(Chana) - New Delhi
• 7. cottonbales
• 8. cottonseeds
• A. undecorticated cotton seed oilcake
• 9. Long Staple Cotton
• 10. Medium Stapple Cotton
• A. NEW MEDIUM STAPLE COTTON
• 11. Silk
• A. Mulberry Raw Silk - Bangalore
• B. Mulberry Green Cocoons - Ramnagar
• 12. Mulberry Raw Silk
• 13. Mulberry Green Cocoons
• 14. Coffee-Arabica
• 15. Cotton Long Kadi
• 16. Cotton Med Abohar
• 17. Cotton Short Staple
• 18. Sugar (S-30)
• 19. Muatardseed Oilcake
• 20. PPTQ
• 21. Cement
• 22. Medium cotton yarn
• 23. Polyvinchlorid
• 1. Pepper Domestic-MG1
• 2. Turmeric
• A. Turmeric - Nizamabad
• 3. Pepper Domestic-500g/l
• 4. Black Pepper Int'l-MLS ASTA
• 5. Black Pepper Int'l-VB ASTA
• 6. Black pepper Int'l FAQ
• 7. Pepper
• A. Pepper Dommestic-MG1.
• B. Black Pepper Int'l VB ASTA.
• C. Black Pepper Int'l-MLS ASTA.
• D. Black Pepper Int'l FAQ.
• E. Pepper Dommestic-500g/L.
• F. Pepper - Kochi
• 8. Cardamom
• 9. Pepper 550 G/L
• 10. Red Chilly
• A. Chilli (Paala) Guntur
• B. Chilli (Paala) LCA 334
• 11. Jeera
• 12. Rubber RSS4
• 13. Jeera Unjha
• 14. CUMINSEED
• 15. Arecanut
• 1. Aluminium Ingots
• 2. Nickel
• 3. Copper
• A. Copper Cathode
• 4. Zinc
• 5. Lead
• 6. Tin
• 7. Gold
• A. Gold-M
• B. Pure Gold - Mumbai
• C. Kilo - Gold
• D. Gold - HNI
• E. SONA995MUM
• F. Pure Gold - Mumbai - 1 Kg
• 8. Silver
• A. Silver-M
• B. Pure Silver - New Delhi - 30 Kg (Mega)
• C. Pure Silver - New Delhi
• D. Silver - HNI
• E. CHANDIDEL
• 9. Steel
• A. Steel - Long
• B. Steel - Flat
• C. Mild Steel Ingots - Ghaziabad
• 10. Steel Long Bhavnagar
• 11. Steel Long Govindgarh
• 12. sponge iron
• 13. GOLD AHMEDABAD
• 14. GOLD DELHI
• 15. GOLD KOLKATA
• 16. GOLD MUMBAI
• 17. GOLD MINI DELHI
• 18. GOLD MINI KOLKATA
• 19. GOLD MINI MUMBAI
• 20. GOLD MINI AHMEDABAD 5.7 METALS
STEVENS BUSINESS SCHOOL BATCH: 2009-2011 Page 23
DYNAMICS OF INDIAN COMMODITY MARKET
• 14. Rice
• 1. Gur
• A. Basmati Rice
• A. Gur-chaku - Muzaffarnagar
• B. Grade A Parboiled Rice Delhi
• 2. Coffee-Plantation A • C. Common Parboiled Rice Delhi
• 3. Potato • D. Indian Raw Rice Parmal
• 4. Sugar • E. Indian Parboiled Rice IR-36/IR-64
• A. Sugar M Grade - Muzaffarnagar • F. Grade A Raw Rice Delhi
• B. Sugar S Grade - Vashi • G. Common Raw Rice Delhi
• C. Sugar S Grade • 15. Wheat
• D. Sugar Grade - M • A. Wheat - New Delhi SMQ
• E. Sugar Grade - S • B. Wheat Delhi (New)
• 5. Coffee-Robusta Cherry AB • 16. Raw Jute
• 6. Raw Coffee Arabica Parchment • A. Raw Jute - Kolkata
• 7. Raw Coffee Robusta Cherry • 17. GuarGum
• 8. Castorseed • A. GuarGum - Jodhpur
• A. Castorseed-5 • 18. Guarseed Bandhani
• B. Castorseed - Disa • 19. Maize
• 9. Castor-oil • A. Yellow Red Maize - Nizamabad
• 10. Coffee • 20. Guar Gum Bandhani
• A. Coffee-Plantation A. • 21. CASHEW KERNEL W320
• B. Coffee-Robusta Cherry AB. • A. Cashew W 320 - Kollam
• C. Raw Coffee Robusta Cherry. • 22. Sugar S
• D. Raw Coffee Arabica Parchment. • 23. Sugar M
• E. Arabica Coffee - Hassan • 24. Sarbati Rice
• F. Robusta Coffee - Kushalnagar • 25. Coffee-Arabica Plantation A
• G. Arabica Coffee - Hassan (New) • 26. Cashews W-320-Kollam
• H. Robusta Coffee - Kushalnagar (New) • 27. Mentha Oil
• 11. Guarseed • 28. Sugar (S30)
• A. Guarseed - Jodhpur • 29. HIGH DENSITY POL
• B. Guarseed - BND • 30. Gurchaku
• 12. CastorOil Cake • 31. cardamom
• 13. Rubber • 32. ISABGULSEED
• A. Rubber - Kottayam • 33. Isabgul
6.1 COMMODITY
A commodity may be defined as an article, a product or material that is bought and sold.
It can be classified as every kind of movable property, except Actionable Claims, Money
& Securities.
1. The product must not have gone through any complicated manufacturing activity,
except for certain basic processing such as mining, cropping, etc. In other words,
the product must be in a basic, raw, unprocessed state. There are of course some
exceptions to this rule. For example, metals, which are refined from metal ores,
and sugar, which is processed from sugarcane.
2. The product has to be fairly standardized, which means that there cannot be much
differentiation in a product based on its quality. For example, there are different
varieties of crude oil. Though these different varieties of crude oil can be treated
as different commodities and traded as separate contracts, there can be a
standardization of the commodities for futures contract based on the largest
traded variety of crude oil. This would ensure a fair representation of the
commodity for futures trading. This would also ensure adequate liquidity for the
commodity futures being traded, thus ensuring price discovery mechanism.
3. A major consideration while buying the product is its price. Fundamental forces of
market demand and supply for the commodity determine the commodity prices.
4. Usually, many competing sellers of the product will be there in the market. Their
presence is required to ensure widespread trading activity in the physical
commodity market.
5. The product should have adequate shelf life since the delivery of a commodity
through a futures contract is usually deferred to a later date (also known as expiry
of the futures contract).
6.2.1 A PERSPECTIVE
2. Changes In Supply: - They are abrupt and unpredictable bringing about wild
fluctuations in prices. This can especially noticed in agricultural commodities where
the weather plays a major role in affecting the fortunes of people involved in this
industry. The futures market has evolved to neutralize such risks through a
mechanism; namely hedging.
Hedging with the objective of transferring risk related to the possession of physical
assets through any adverse moments in price. Liquidity and Price discovery to
ensure base minimum volume in trading of a commodity through market
information and demand supply factors that facilitates a regular and authentic
price discovery mechanism.
Price stabilization along with balancing demand and supply position. Futures
trading leads to predictability in assessing the domestic prices, which maintains
stability, thus safeguarding against any short term adverse price movements.
Liquidity in Contracts of the commodities traded also ensures in maintaining the
equilibrium between demand and supply.
Flexibility, certainty and transparency in purchasing commodities facilitate bank
financing. Predictability in prices of commodity would lead to stability, which in
turn would eliminate the risks associated with running the business of trading
commodities. This would make funding easier and less stringent for banks to
commodity market players.
The primary objectives of any futures exchange are authentic price discovery and an
efficient price risk management. The beneficiaries include those who trade in the
commodities being offered in the exchange as well as those who have nothing to do with
futures trading. It is because of price discovery and risk management through the
Price Risk Management: - Hedging is the most common method of price risk
management. It is strategy of offering price risk that is inherent in spot market by
taking an equal but opposite position in the futures market. Futures markets are
used as a mode by hedgers to protect their business from adverse price change.
This could dent the profitability of their business. Hedging benefits who are
involved in trading of commodities like farmers, processors, merchandisers,
manufacturers, exporters, importers etc.
Import- Export competitiveness: - The exporters can hedge their price risk and
improve their competitiveness by making use of futures market. A majority of
traders which are involved in physical trade internationally intend to buy forwards.
The purchases made from the physical market might expose them to the risk of
price risk resulting to losses. The existence of futures market would allow the
exporters to hedge their proposed purchase by temporarily substituting for actual
purchase till the time is ripe to buy in physical market. In the absence of futures
market it will be meticulous, time consuming and costly physical transactions.
Predictable Pricing: - The demand for certain commodities is highly price elastic.
The manufacturers have to ensure that the prices should be stable in order to
protect their market share with the free entry of imports. Futures contracts will
enable predictability in domestic prices. The manufacturers can, as a result,
STEVENS BUSINESS SCHOOL BATCH: 2009-2011 Page 28
DYNAMICS OF INDIAN COMMODITY MARKET
smooth out the influence of changes in their input prices very easily. With no
futures market, the manufacturer can be caught between severe short-term price
movements of oils and necessity to maintain price stability, which could only be
possible through sufficient financial reserves that could otherwise be utilized for
making other profitable investments.
An option for high net worth investors: With the rapid spread of derivatives
trading in commodities, the commodities route too has become an option for high
net worth and savvy investors to consider in their overall asset allocation.
A highly liquid asset class, acting as a counterweight to stocks, bonds and real estate.
Predictability of future
Predictability of futures
prices is not in the
performance is reasonably
control due to factors like
Future Predictability high, which is supplemented
Failure of Monsoon and
by the History of
Formation of El-ninos at
management performance.
Pacific.
Volatility Lower Volatility Higher Volatility
Securities Transaction
Securities Securities Transaction Act is
Act is not applicable to
Transaction Act applicable to equity markets
commodity futures
Application trading.
trading.
In recent years, derivatives have become increasingly popular due to their applications
for hedging, speculation and arbitrage.
While futures and options are now actively traded on many exchanges, forward
contracts are popular on the OTC market.
While at the moment only commodity futures trade on the NCDEX, eventually, as the
market grows, we also have commodity options being traded.
Spot price: The price at which an asset trades in the spot market.
Futures price: The price at which the futures contract trades in the futures
market.
Initial Margin
The amount that must be deposited in the margin account at the time a futures
contract is first entered into is known as initial margin.
In the futures market, at the end of each trading day, the margin account is adjusted
to reflect the investor's gain or loss depending upon the futures closing price. This is
called marking-to-market.
All open positions will be marked-to-market at the daily settlement price at the end of
the day Client has to bring mark-to-market (MTM) margin to be through funds
transfer the next day.
Maintenance margin
This is somewhat lower than the initial margin. This is set to ensure that the balance
in the margin account never becomes negative. If the balance in the margin account
falls below the maintenance margin, the investor receives a margin call and is
expected to top up the margin account to the initial margin level before trading
commences on the next day.
Options are fundamentally different from forward and futures contracts. An option gives
the holder of the option the right to do something. The holder does not have to exercise
this right. In contrast, in a forward or futures contract, the two parties have committed
themselves to doing something.
Whereas it costs nothing (except margin requirements) to enter into a futures contract,
the purchase of an option requires an up-front payment.
There are two basic types of options, call options and put options.
Call option: A call option gives the holder the right but not the obligation to buy
an asset by a certain date for a certain price.
Put option: A put option gives the holder the right but not the obligation to sell
an asset by a certain date for a certain price.
Participants who trade in the derivatives market can be classified under the following
three broad categories:
Hedgers
Speculators
Arbitragers
8.1 HEDGERS
The holders of the long position in futures contracts (buyers of the commodity), are
trying to secure as low a price as possible. The short holders of the contract ( sellers of
the commodity) will want to secure as high a price as possible. The commodity contract,
however, provides a definite price certainty for both parties, which reduces the risks
associated with price volatility. By means of futures contracts, Hedging can also be used
as a means to lock in an acceptable price margin between the cost of the raw material
and the retail cost of the final product sold.
Someone going long in a securities future contract now can hedge against rising equity
prices in three months. If at the time of the contract's expiration the equity price has
risen, the investor's contract can be closed out at the higher price. The opposite could
happen as well: a hedger could go short in a contract today to hedge against declining
stock prices in the future.
Other commodity market participants, however, do not aim to minimize risk but rather
to benefit from the inherently risky nature of the commodity market. These are the
speculators, and they aim to profit from the very price change that hedgers are
protecting themselves against. A hedger would want to minimize their risk no matter
what they're investing in, while speculators want to increase their risk and therefore
maximize their profits. In the commodity market, a speculator buying a contract low in
order to sell high in the future would most likely be buying that contract from a hedger
selling a contract low in anticipation of declining prices in the future.
Unlike the hedger, the speculator does not actually seek to own the commodity in
question. Rather, he or she will enter the market seeking profits by off setting rising and
declining prices through the buying and selling of contracts.
LONG SHORT
8.3 ARBITRAGERS
A central idea in modern economics is the law of one price. This states that in a
competitive market, if two assets are equivalent from the point of view of risk and
return, they should sell at the same price. If the price of the same asset is different in
two markets, there will be operators who will buy in the market where the asset sells
cheap and sell in the market where it is costly. This activity termed as arbitrage,
involves the simultaneous purchase and sale of the same or essentially similar security
in two different markets for advantageously different prices. The buying cheap and
Since the cash and futures price tend to move in the same direction as they both react
to the same supply/demand factors, the difference between the underlying price and
futures price is called as basis. Basis is more stable and predictable than the movement
of the prices of the underlying or the Futures price. Thus, arbitrageur would predict the
basis and accordingly take positions in the cash and future markets.
• Producers – farmers
HEDGERS
• Consumers – refineries, food processing companies
• Brokerage houses
SPECULATORS • Retail investors
• People involved in commodity spot trading
• Brokerage houses
ARBITRAGEURS • People trading in commodity spot markets
• Warehousing companies
The futures market is a centralized market place for buyers and sellers from around the
world who meet and enter into commodity futures contracts. Pricing mostly is based on
an open cry system, or bids and offers that can be matched electronically. The
commodity contract will state the price that will be paid and the date of delivery. Almost
all futures contracts end without the actual physical delivery of the commodity.
The first is the spot trade, in which one pays cash and carries away the goods.
The second is futures trade. The underpinning for futures is the warehouse receipt. A
person deposits certain amount of say, good X in a ware house and gets a warehouse
receipt which allows him to ask for physical delivery of the good from the warehouse but
some one trading in commodity futures need not necessarily posses such a receipt to
strike a deal. A person can buy or sale a commodity future on an exchange based on his
expectation of where the price will go.
Futures have something called an expiry date, by when the buyer or seller either closes
(square off) his account or give/take delivery of the commodity. The broker maintains
an account of all dealing parties in which the daily profit or loss due to changes in the
futures price is recorded. Squiring off is done by taking an opposite contract so that the
net outstanding is nil.
For commodity futures to work, the seller should be able to deposit the commodity at
warehouse nearest to him and collect the warehouse receipt. The buyer should be able
to take physical delivery at a location of his choice on presenting the warehouse receipt.
But at present in India very few warehouses provide delivery for specific commodities.
A futures contract is an agreement between two parties: a short position, the party who
agrees to deliver a commodity, and a long position, the party who agrees to receive a
commodity.
In every commodity contract, everything is specified: the quantity and quality of the
commodity, the specific price per unit, and the date and method of delivery. The price of
a futures contract is represented by the agreed - upon price of the underlying
commodity or financial instrument that will be delivered in the future.
Commodity code
Quantity
Location/branch preference for physical receipt/delivery of commodities
STEVENS BUSINESS SCHOOL BATCH: 2009-2011 Page 41
DYNAMICS OF INDIAN COMMODITY MARKET
Demat Indicator Delivery process requires
Commodity
Quantity
Location
Branch
Matching limited to the total warehouse capacity
Settlement through Depository.
Settlement Schedule in Settlement Calendar
Today Commodity trading system is fully computerized. Traders need not visit a
commodity market to speculate. With online commodity trading they could sit in the
confines of their home or office and call the shots.
The commodity trading system consists of certain prescribed steps or stages as follows:
II. CLEARING
I. TRADING
III. SETTLEMENT
- Execution - Registration -Marking to market
- Matching - Clearing - Receipts and payments
- Reporting - Clearing limits - Reporting
- Surveillance - Notation - Delivery upon
expiration or maturity
- Price limits - Margining
- Position limits - Price limits
- Position limits
- Clearing house
Most futures contracts do not lead to the actual physical delivery of the underlying asset.
The settlement is done by closing out open positions, physical delivery or cash
settlement. All these settlement functions are taken care of by an entity called clearing
house or clearing corporation. National Securities Clearing Corporation Limited (NSCCL)
undertakes clearing of trades executed on the NCDEX. The settlement guarantee fund is
maintained and managed by NCDEX.
9.3.1 CLEARING
Clearing of trades that take place on an exchange happens through the exchange
clearing house.
A clearing house is a system by which exchanges guarantee the faithful compliance of all
trade commitments undertaken on the trading floor or electronically over the electronic
trading systems. The main task of the clearing house is to keep track of all the
transactions that take place during a day so that the net position of each of its members
can be calculated. It guarantees the performance of the parties to each transaction.
Typically it is responsible for the following:
Effecting timely settlement.
Trade registration and follow up.
Control of the evolution of open interest.
Financial clearing of the payment flow.
Physical settlement (by delivery) or financial settlement (by price difference)
of contracts.
Administration of financial guarantees demanded by the participants.
The clearing house has a number of members, who are mostly financial institutions
responsible for the clearing and settlement of commodities traded on the exchange. The
margin accounts for the clearing house members are adjusted for gains and losses at
the end of each day (in the same way as the individual traders keep margin accounts
with the broker).
Only clearing members including professional clearing members (PCMs) are entitled to
clear and settle contracts through the clearing house.
The clearing mechanism essentially involves working out open positions and obligations
of clearing members. This position is considered for exposure and daily margin
purposes. The open positions of PCMs are arrived at by aggregating the open positions
of all the TCMs clearing through him, in contracts in which they have traded. A TCM's
open position is arrived at by the summation of his clients' open positions, in the
contracts in which they have traded. Client positions are netted at the level of individual
client and grossed across all clients, at the member level without any set-offs between
clients. Proprietary positions are netted at member level without any set-offs between
client and proprietary positions.
9.3.2 SETTLEMENT
Futures contracts have two types of settlements, the MTM settlement which happens on
a continuous basis at the end of each day, and the final settlement which happens on
the last trading day of the futures contract.
Daily settlement price: Daily settlement price is the consensus closing price as
arrived after closing session of the relevant futures contract for the trading day.
However, in the absence of trading for a contract during closing session, daily
settlement price is computed as per the methods prescribed by the exchange from
time to time.
Final settlement price: Final settlement price is the closing price of the
underlying commodity on the last trading day of the futures contract. All open
positions in a futures contract cease to exist after its expiration day.
PAY-IN PAY-OUT
COMMODITIES COMMODITIES
• Seller ensures Demat of commodities • Credit given into the Buyer member
prior to Pay-in CM Pool A/c
• Instruction to DP by seller to move • Instruction by Member to transfer
commodities to Clearing Member Pool from CM pool to buyer client’s Demat
Account account
• Pay-in of commodities on Settlement • Subsequent Remat of commodities and
Date thru Clearing member pool physical movement handled by buyer
account
FUNDS FUNDS
• Pay-in of funds – Thru the Clearing • Funds pay-out is done into the
bank of the Member on the Pay-in day. designated bank account of the
Member with the Clearing bank
MARKET
10.1 NEED FOR REGULATION
The need for regulation arises on account of the fact that the benefits of futures markets
accrue in competitive conditions. Proper regulation is needed to create competitive
conditions. In the absence of regulation, unscrupulous participants could use these
leveraged contracts for manipulating prices. This could have undesirable influence on the
spot prices, thereby affecting interests of society at large.
Regulation is also needed to ensure that the market has appropriate risk management
system. In the absence of such a system, a major default could create a chain reaction.
The resultant financial crisis in a futures market could create systematic risk.
Regulation is also needed to ensure fairness and transparency in trading, clearing,
settlement and management of the exchange so as to protect and promote the interest
of various stakeholders, particularly non-member users of the market.
After independence, the Constitution of India brought the subject of "Stock Exchanges
and futures markets" in the Union list. As a result, the responsibility for regulation of
commodity futures markets devolved on Govt. of India. A Bill on forward contracts was
referred to an expert committee headed by Prof. A.D.Shroff and Select Committees of
two successive Parliaments and finally in December 1952 Forward Contracts
(Regulation) Act, 1952, was enacted. The Act provided for 3-tier regulatory system;
(b) The Forward Markets Commission (it was set up in September 1953) and
Forward Contracts (Regulation) Rules were notified by the Central Government in July,
1954.
(a) The commodities in which futures trading can be organized under the auspices of
recognized association.
(c) Those commodities which have neither been regulated for being traded under the
recognized association nor prohibited are referred as Free Commodities and the
association organized in such free commodities is required to obtain the Certificate
of Registration from the Forward Markets Commission.
1. Limit on net open position as on the close of the trading hours. Some times limit is
also imposed on intra-day net open position. The limit is imposed operator-wise, and in
some cases, also member-wise.
5. Skipping trading in certain derivatives of the contract, closing the market for a
specified period and even closing out the contract: These extreme measures are taken
only in emergency situations.
Besides these regulatory measures, the F.C(R) Act provides that a client's position
cannot be appropriated by the member of the exchange, except when a written consent
is taken within three days time. The FMC is persuading increasing number of exchanges
to switch over to electronic trading, clearing and settlement, which is more customer-
friendly. The FMC has also prescribed simultaneous reporting system for the exchanges
following open out-cry system. These steps facilitate audit trail and make it difficult for
the members to indulge in malpractices like trading ahead of clients, etc. The FMC has
also mandated all the exchanges following open outcry system to display at a prominent
place in exchange premises, the name, address, telephone number of the officer of the
commission who can be contacted for any grievance. The website of the commission also
has a provision for the customers to make complaint and send comments and
suggestions to the FMC. Officers of the FMC have been instructed to meet the members
and clients on a random basis, whenever they visit exchanges, to ascertain the situation
on the ground, instead of merely attending meetings of the board of directors and
holding discussions with the office-bearers.
Turnover rose 44.12 percent to 3.79 trillion rupees in the fortnight ending March. 15, data
showed on Thursday.
Active trade was seen in gold, silver, copper and crude oil in the energy and metals pack during
the March ’10 first fortnight.
Guar seed, chana, soybean, turmeric and jeera saw maximum trade among agricultural
commodities.
Turnover at India's 23 commodity bourses, including four operating at the national level, grew
from 1.29 trillion rupees in 2003/04 to 52.49 trillion rupees in 2008/09.
The regulator said it has approved Fid Fund (Mauritius) Ltd, an affiliate of Fidelity International's
sale of 1.62 percent stake in Multi Commodity Exchange of India (MCX) to Intel Capital
(Mauritius) Ltd.
FMC had last month allowed Fid Fund (Mauritius) Ltd's sale of 2.03 percent stake in MCX to
Passport India Investments (Mauritius) Ltd.
30
25
20
2004-05
15 2005-06
10 2006-07
5 2007-08
0
Bullion and Agriculture Energy Others
other metals
SOURCE: ECFT
The year 2003 is a watershed in the history of commodity futures market. The last
group of 54 prohibited commodities was opened up for forward trading, along with
establishment and recognition of three new national exchanges with on-line trading and
professional management. Not only was prohibition on forward trading completely
withdrawn, including in sensitive commodities such as wheat, rice, sugar and pulses
which earlier committees had reservations about, the new exchanges brought capital,
technology and innovation to the market. These markets notched up phenomenal
growth in terms of number of products on offer, participants, spatial distribution and
volume of trade. Starting with trade in 7 commodities till 1999, futures trading is now
available in 95 commodities. There are more then 3000 members registered with the
exchanges. More than 20,000 terminals spread over more than 800 towns/cities of the
country provide access to trading platforms. The volume of trade has increased
450,000.00
TRADE VALUE IN Rs. CRORE
400,000.00
350,000.00
300,000.00
250,000.00
200,000.00
2008-09
150,000.00
2009-10
100,000.00
50,000.00
0.00
1/4-15/4
16/4-30/4
1/5-15/5
16/5-30/5
1/6-15/6
16/6-30/6
1/7-15/7
16/7-30/7
1/8-15/8
16/8-30/8
1/9-15/9
16/9-30/9
1/1-15/1
16/1-31/1
1/2-15/2
16/2-28/2
1/3-15/3
1/10-15/10
1/11-15/11
1/12-15/12
16/10-30/10
16/11-30/11
16/12-30/12
SOURCE: www.fmc.gov.in
Here for instance year 2008-09 and 2009-10 from April to mid of May the market was
moving almost parallel with fall of 2% during commence of July and 8% peak in
Commence of September in 2009.
Again in December 2009 there is a peak in overall commodity market the peak of
30% in the commodity market. This is mainly because of in this tenure gold was at
its top in the commodity market. And the prices of gold touched pinnacle of 10 years
of market.
SOURCE: www.mcx.com
11%
6% Fibres and Manufactures
4%
Spices
1%
Edible Oil seeds and Oil
10% Pulses
66% Energy Products
Vegetables
Metals
Other
Even though the commodity derivatives market has made good progress in the last few
years, the real issues facing the future of the market have not been resolved. Agreed,
the number of commodities allowed for derivative trading have increased, the volume
and the value of business has zoomed, but the objectives of setting up commodity
derivative exchanges may not be achieved and the growth rates witnessed may not be
sustainable unless these real issues are sorted out as soon as possible. Some of the
main unresolved issues are discussed below.
iii. Cash versus Physical Settlement: It is probably due to the inefficiencies in the
present warehousing system that only about 1% to 5% of the total commodity
derivatives trade in the country is settled in physical delivery. Therefore the
warehousing problem obviously has to be handled on a war footing, as a good
delivery system is the backbone of any commodity trade. A International Research
Journal of Finance and Economics - Issue 2 (2006) 161 particularly difficult
problem in cash settlement of commodity derivative contracts is that at present,
under the Forward Contracts (Regulation) Act 1952, cash settlement of
outstanding contracts at maturity is not allowed. In other words, all outstanding
contracts at maturity should be settled in physical delivery. To avoid this,
participants square off their positions before maturity. So, in practice, most
contracts are settled in cash but before maturity. There is a need to modify the
law to bring it closer to the widespread practice and save the participants from
unnecessary hassles.
iv. The Regulator: As the market activity pick-up and the volumes rise, the market
will definitely need a strong and independent regular, similar to the Securities and
Exchange Board of India (SEBI) that regulates the securities markets. Unlike SEBI
which is an independent body, the Forwards Markets Commission (FMC) is under
the Department of Consumer Affairs (Ministry of Consumer Affairs, Food and Public
Distribution) and depends on it for funds. It is imperative that the Government
should grant more powers to the FMC to ensure an orderly development of the
commodity markets. The SEBI and FMC also need to work closely with each other
due to the inter-relationship between the two markets.
STEVENS BUSINESS SCHOOL BATCH: 2009-2011 Page 58
DYNAMICS OF INDIAN COMMODITY MARKET
v. Lack of Economy of Scale: There are too many (3 national level and 21
regional) commodity exchanges. Though over 80 commodities are allowed for
derivatives trading, in practice derivatives are popular for only a few commodities.
Again, most of the trade takes place only on a few exchanges. All this splits
volumes and makes some exchanges unviable. This problem can possibly be
addressed by consolidating some exchanges. Also, the question of convergence of
securities and commodities derivatives markets has been debated for a long time
now. The Government of India has announced its intention to integrate the two
markets. It is felt that convergence of these derivative markets would bring in
economies of scale and scope without having to duplicate the efforts, thereby
giving a boost to the growth of commodity derivatives market. It would also help
in resolving some of the issues concerning regulation of the derivative markets.
However, this would necessitate complete coordination among various regulating
authorities such as Reserve Bank of India, Forward Markets commission, the
Securities and Exchange Board of India, and the Department of Company affairs
etc.
vi. Tax and Legal bottlenecks: There are at present restrictions on the movement
of certain goods from one state to another. These need to be removed so that a
truly national market could develop for commodities and derivatives. Also,
regulatory changes are required to bring about uniformity in octroi and sales taxes
etc. VAT has been introduced in the country in 2005, but has not yet been
uniformly implemented by all states.
Following are some of applications, which can utilize the power of the commodity market
and create a win-win situation for all the involved parties:-
70,000.00
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00 2008-09
10,000.00 2009-10
0.00
1/4-15/4
1/5-15/5
1/6-15/6
1/7-15/7
1/8-15/8
1/9-15/9
1/1-15/1
1/2-15/2
1/3-15/3
16/4-30/4
16/5-30/5
16/6-30/6
16/7-30/7
16/8-30/8
16/9-30/9
1/10-15/10
1/11-15/11
1/12-15/12
16/1-31/1
16/2-28/2
16/10-30/10
16/11-30/11
16/12-30/12
TIME PERIOD - DATEWISE
SOURCE: www.fmc.com
This graph is specific for agri commodity market. It shows market trend for the years
2008-09 and 2009-10.
Here If trends of April 2009 -10 is observed then there is a in the mid of April there is a
peak and commodity market reach to 50,000crore.Here market went up because of
summer harvest. Again at commence of August it is peaked up and cross the line of
60,000 crore. It goes down due to draught condition. Again in the months of November
December 2009 it went to peak as better winter crops are harvested it reach to peak
and crossed the line of 700 crore which was the highest of 2 years.
In 2008-09 between due to inflation in the world economy the market go to the bottom
of 12000crore.And it has started gradually growing up till January and again it falls down
and goes up in March.
88
75
71
57 60 59
42 39
32
27
21 21
14 13 17
4 5 3
35
30
25
YALUE IN %
20
India Consumption
15
US consumption
10
Here in a given graph overall consumption pattern of India and US is mentioned. Here it
is compared with overall consumption in the world of a given edibles. For instance if we
see wheat then India is consuming around 17% of and USA is consuming around 4% of
wheat out of total consumed in the world.
This graph shows the country is able to export the edible or not. On Y axis the ration of
production to consumption is given, where this ratio is more than 1 that country is able
to import that particular commodity. When the ratio is less than 1 those commodity is
exported by that country as consumption of that commodity is more in that country than
the production.
USA has production consumption ratio i.e. US is not into the production of coffee. It
exports its entire coffee requirement from other countries.
13.1 INTRODUCTION
Groundnut is an important crop both for oil and food. It is grown in over 100 countries in
the world and plays an important role in the economy of several countries. About two
thirds of the crop produced in the world is crushed to extract oil and one-third is used to
make other edible products. India accounts for 40 per cent of the world area and 30 per
cent of world output of groundnut. On the other hand groundnut and groundnut oil is the
most illiquid commodity in the commodity exchanges in India. Therefore the focus of the
study is to understand the trade volume of groundnut as a commodity in commodity
exchanges all over the world and gain knowledge about various factors governing
supply, demand and price of these commodities in Indian market.
13.2 OVERVIEW
Groundnut is considered to be the one of the most important oilseed crops in the world.
It is grown in over 100 countries of the world and plays a crucial role in the world
economy. The seeds are a good source of edible oil and proteins present in the
groundnut oil cake. The percentage of oil and protein are extracted from the seed are
approximately 55% and 28% respectively. The oil cake meal left after the extraction of
the oil is used as an animal fodder and fertilizer. The peanut oil is primarily needed as a
cooking agent but it also has some industrial uses like in paint, varnish, lubricating oil,
soap, furniture polish etc. the peanut seeds are also consumed directly in roasted form,
as butter, in brittle and candies etc.
Groundnut production has reached the mark of around 34 million tons. China followed
by India is the largest producer of this oilseed crop in the world. The groundnut oil
production hovers around 8 million tons annually. These two countries are also
responsible for the highest consumption of groundnut. The list depicting the major
groundnut consuming countries is given below:
China
India
Nigeria
United States
European Union
Except European Union, all the countries lie in the list of major groundnut producing
countries as well. European Union countries are the largest consumer of groundnuts
where the crop is not produced. The major demand i.e. around 75% comes from the
food sector and the rest from other sectors. As European Union is the largest consumer
of the oilseed where it is not produced, it has to rely on imports and that makes the
countries in the union the largest importers of groundnut. The trade done in the world in
the context of groundnuts is estimated to about 1 lakh tons per year. The leading
groundnut exporting countries are:
Argentina
China
Senegal
Vietnam
Nigeria
South Africa
India
Gambia
United States
The countries mentioned above contribute to about 90% of the world exports. Argentina
makes the largest groundnut exporter to the world. The major countries that satisfy
their domestic consumption demand by importing groundnuts are:
Belgium
United States
France
Ireland Sweden
Italy Indonesia
Netherlands Canada
Malaysia Philippines
Singapore Japan
Groundnut is one of the vastly produced oilseed crop in the world as it is cultivated in
more than 100 countries in the world and that is why it is referred to as a universal
crop. The areas in the tropical belt of the earth enjoy the major share in this groundnut
crop production as this type of weather conditions suit well to it. It is estimated that
around 65% of the crop produced in the world is crushed to extract groundnut oil and
the rest is used in making other edible products.
The world production of groundnut seeds hovers around 34 million tons per year in the
current scenario. The groundnut oil is produced to an extent of around 8 million tons.
The major producers of groundnut in 2005 along with their production figures are
The Indian production and area covered is largely concentrated in the above-mentioned
states. Today, groundnut has a share of approximately 25% in the total Indian oilseed
production. But this share is constantly reducing since India got independent, as it was
a. The average production per year had been to the tune of 5.95 million tones.
b. Nevertheless, the variation in average production has been high with a co-efficient of
variation of almost 27%.
India has been a land where oilseeds have much importance than any other crop.
Groundnut constitutes one of the major oil seed in India. As already mentioned, it
accounts to about 25% share in the total oilseeds production in India. The country
produces around 6 million tons of groundnuts annually; Gujarat being the leader in the
production of the crop producing over 40% of the crop produced India. The groundnut
oil production in India hovers around 1.5 million tons per year. The production of
groundnut seed in the country has shown fluctuations quite often largely due to the
monsoon behavior. India places 2nd in the world groundnut consumption list. The
country actually consumes all most all of its groundnut yield produced that is around
30% of the world„s total consumption. The main demand of groundnut and derivatives
generate from the western and southern parts of the country. This consumption pattern
of the country contracts the Indian groundnut export size and does not allow it to gain
dominance over the world market even though a high production level. Earlier it was an
important exporter of groundnut and its by-products in 1970s. But with time it lost all its
importance due to its high prices and increasing competitiveness. The Indian exports of
groundnut oil to the world showed a fluctuating trend in the last decade. In 2003-04
India exported around 1 lakh tons of groundnut oil due to a crop failure in Argentina and
Senegal. The imports in the country are second to none as the production level is quite
sufficient for the domestic demand level in the country.
Also, groundnut is traded in Indian commodity exchanges namely, NCDEX, MCX, NMCE
Commodities in which future contracts are successful are commodities those are
not protected through government policies; (Example: Gold/ Silver/ Cotton/ Jute)
and trade constituents of these commodities are not complaining too. This should
act as an eye-opener to the policy makers to leave pricing and price risk
management to the market forces rather than to administered mechanisms alone.
Any economy grows when the constituents willingly accept the risk for better
returns; if risks are not compensated with adequate or more returns, economic
activity will come into a standstill.
Worldwide, Derivatives volumes of non-US exchanges in the last decade, has been
increasing as compared to the US Exchanges.
Commodities are less volatile compared to equity market, but more volatile as
compared to G-Sec's.
The basic idea of Commodity markets is to encourage farmers to choose cropping
pattern based on future and not past prices.
Industry in India runs the raw material price risk, going forward they can hedge
this risk.
Commodities Exchanges are working with banks to provide liquidity to retail
investors against holdings such as bullion, cotton or any edible oil, much like loan
against shares.
At the Market: - An order to buy or sell at the best price possible at the time an
order reaches the trading pit.
Basis: - Basis is the difference between the cash price of an asset and futures
price of the underlying asset. Basis can be negative or positive depending on the
prices prevailing in the cash and futures.
Basis grade: - Specific grade or grades named in the exchanges future contract.
The other grades deliverable are subject to price of underlying futures
Buy on opening: - To buy at the beginning of trading session at a price within the
opening range.
Call: - An option that gives the buyer the right to a long position in the underlying
futures at a specific price, the call writer (seller) may be assigned a short position
in the underlying futures if the buyer exercises the call.
Close: - The period at the end of trading session officially designated by exchange
during which all transactions are considered made “at the close”.
Closing price: - The price (or price range) recorded during the period designated
by the exchange as the official close.
Cover: - The cancellation of the short position in any futures contract buys the
purchase of an equal quantity of the same futures contract.
Day orders: - Orders at a limited price which are understood to be good for the
day unless expressly designated as an open order or “good till canceled” order.
Delivery month: - Specified month within which delivery may be made under the
terms of futures contract.
Derivatives: - These are financial contracts, which derive their value from an
underlying asset. (Underlying assets can be equity, commodity, foreign exchange,
interest rates, real estate or any other asset.) Four types of derivatives are trades
forward, futures, options and swaps. Derivatives can be traded either in an
exchange or over the counter.
Differentials: - The premium paid for grades batter than the basis grade and the
discounts allowed for the grades. These differentials are fixed by the contract
terms on most exchanges.
Standardized contracts ensure that the prices mean the same to everyone in the
market. The prices in an exchange are determined in the form of a continuous
auction by members who are acting on behalf of their clients, companies or
themselves.
In the money: - In call options when strike price is below the price of underlying
futures. In put options, when the strike price is above the underlying futures. In-
the-money options are the most expensive options because the premium includes
intrinsic value.
Index Futures: - Futures contracts based on indexes such as the S & P 500 or
Value Line Index. These are the cash settlement contracts.
Limit: - The maximum daily price change above or below the price close in a
specific futures market. Trading limits may be changed during periods of unusually
high market activity.
Long: - (1) The buying side of an open futures contract or futures option; (2) a
trader whose net position in the futures or options market shows an excess of
open purchases over open sales.
Margin call: - Demand for additional funds or equivalent because of adverse price
movement or some other contingency.
Market order: - An order for immediate execution at the best available price.
Net position: - The difference between the open contracts long and the open
contracts short held in any commodity by any individual or group.
Open contracts: - Contracts which have been brought or sold without the
transaction having been completed by subsequent sale, repurchase or actual
delivery or receipt of commodity.
Out-of-the money: - Option calls with the strike prices above the price of the
underlying futures, and puts with strike prices below the price of the underlying
futures.
Point: - The minimum unit in which changes in futures prices may be expressed
(minimum price fluctuation may be in multiples of points).
Put: - In options the buyer of a put has the right to continue a short position in an
underlying futures contract at the strike price until the option expires; the seller
(writer) of the put obligates himself to take a long position in the futures at the
strike price if the buyer exercises his put.
Ratio hedging: - Hedging a cash position with futures on a less or more than
one-for-one basis.
Round turn: - The execution of the same customer of a purchase transaction and
a sales transaction which offset each other.
Round turn commission: - The cost to the customer for executing a futures
contract which is charged only when the position is liquidated.
Scalping: - For floor traders, the practice of trading in and out of contracts
through out the trading day in a hopes for making a series of small profits.
Settlement price: - The official daily closing price of futures contract, set by the
exchange for the purpose of setting margins accounts.
Short: - (1) The selling of an option futures contract. (2) A trader whose net
position in the futures market shows an excess of open sales over open purchases.
Spot price: - The price at which the spot or cash commodity is selling on the cash
or spot market.
Swaptions: Swaptions are options to buy or sell a swap that will become
operative at the expiry of the options. Thus a swaption is an option on a forward
swap.
Time value: - In options the value of premium is based on the amount of time
left before the contract expires and the volatility of the underlying futures
contract. Time value represents the portion of the premium in excess of intrinsic
value. Time value diminishes as the expiration of the options draws near and/or if
the underlying futures become less volatile.
Writer: - A sealer of an option who collects the premium payment from the buyer.
India US India US
India USA India Consumption US consumption world total volume Prod/cons Prod/cons Production Production
volume rank volume rank of world % of Word % ratio ratio
Metals
aluminum 1021 8 7,145 2 2.869428 20.08038 35,582 1.014 0.426 1035.294 3043.77
copper 498 11 2,685 2 2.626028 14.15841 18,964 0.078 0.502 38.844 1347.87
lead 101 15 1,643 2 1.180734 19.20739 8,554 0.059 0.316 5.959 519.188
Agriculture
BATCH: 2009-2011
wheat 80,482 2 31,850 4 13.45248 5.323692 598,269 1.253 1.866 100843.9 59432.1
rice 102,142 2 4,624 12 25.52848 1.155682 400,110 1.086 1.652 110926.2 7638.848
maize 16,140 6 251,231 1 2.337007 36.37723 690,627 1.103 1.317 17802.42 330871.2
soybeans 8,050 5 48,238 1 4.122202 24.70146 195,284 1.003 1.543 8074.15 74431.23
soy oil 1,900 4 8,243 1 6.402912 27.77853 29,674 0.693 1.108 1316.7 9133.244
palm oil 4,135 2 169 37 15.01889 0.613831 27,532 NA 1.397 236.093
sugar 31,020 1 24,388 2 16.13784 12.68761 192,219 1.217 0.992 37751.34 24192.9
tea 761 1 154 7 19.09182 3.863522 3,986 1.294 0 984.734 0
coffee 65 27 1,333 1 0.815763 16.72942 7,968 4.958 0.005 322.27 6.665
cotton 3,032 2 1,402 5 15.60393 7.215275 19,431 1.002 3.143 3038.064 4406.486
rubber 782 4 1,246 2 8.159432 13.00083 9,584 1.106 1.16 864.892 1445.36
DYNAMICS OF INDIAN COMMODITY MARKET
Page 83
DYNAMICS OF INDIAN COMMODITY MARKET
17. REFERENCE
http://www.fmc.gov.in/
http://www.eurojournals.com/finance.htm
http://www.scribd.com/doc/15961806/Commodity-Market-Report
http://www.coolavenues.com/know/fin/tushar_3.php3
http://finance.indiamart.com/markets/commodity/nmceil.html
http://business.mapsofindia.com/india-market/commodity.html
http://www.tradingpicks.com/beginners_guide.htm
http://www.indiancommodity.com/lic.htm
http://ncdex.com/Aboutus/profile.aspx
http://www.indiancommodity.com/trader.htm
http://finance.indiamart.com/markets/commodity/traders_derivatives_market.htm
l
http://business.mapsofindia.com/india-market/commodity.html
http://isid.org.in/pdf/WP1003.PDF
http://www.ftkmc.com/markets-commodities.html
http://www.banknetindia.com/banking/80628.htm
http://www.religarecommodities.com/class_roomIntro.asp
http://www.oxfordfutures.com/futures-education/futures-fundamentals/how-the-
market-works.htm
http://www.smcindiaonline.com/commo_trading_faq.asp
http://www.docstoc.com/docs/32951953/Commodity-Futures-Market-in-India
http://www.fmc.gov.in/htmldocs/Abhijit%20Sen%20Report.pdf