Stock Advisory in Indore, NCDEX proposes delivery-based metals contracts to capture Indian prices
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NCDEX is also considering location-spread contracts for agri commodities
The National Commodity & Derivatives Exchange (NCDEX), India’s leading agricultural commodity derivatives exchange, plans to penetrate into market leader Multi Commodity Exchange’s (MCX)’s stronghold of metals derivatives. The plan is to launch two metals contracts, which will be delivery contracts and capture Indian prices. The course is also considering launching location-spread contracts for agri commodities, in a first in the country.
Samir Shah, managing director and chief executive officer, NCDEX, said, “We have always tried to diversify into non-agri but only in a differentiated manner. We have applied for two contracts, aluminium and nickel, to Sebi (Securities and Exchange Board of India).”
Both contracts will be under compulsory delivery, which will be for the first time in the metals derivatives segment. MCX metals contracts are cash-settled, and the settlement is done based on London Metal Exchange prices.
“Sebi is also aggressively moving towards promoting the delivery-based derivatives. We are rightly positioned in India as the only exchange with deep expertise in delivery. If we can handle agri, we can handle anything else, as agri is the most complex of all, with natural deterioration in quality, food standard etc,” he said.
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