Page 261 - DCOM507_STOCK_MARKET_OPERATIONS

Stock Market Operations Tanima Dutta, Lovely Professional University

Notes Unit 13: Commodity Market

CONTENTS
Objectives

Introduction
13.1 The Indian Connection
13.1.1 Commodity Trading
13.1.2 The Indian Commodity Market
13.2 Commodity and Currency Derivatives – Introduction

13.2.1 Commodities Future
13.2.2 Benefits of Commodities Futures
13.3 Legal Framework

13.3.1 Policy Liberalisation
13.3.2 Wholesale Price Index
13.3.3 Commodity Export Scenario
13.4 Current Developments in this Market
13.4.1 Need for an Exchange-traded Commodity Derivatives Market

13.4.2 Opportunities the Commodity Derivatives Provide for Investors
13.4.3 Top 10 Commodities
13.5 Summary

13.6 Keywords
13.7 Review Questions
13.8 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the concept of Indian connection of commodities market
 Discuss the commodity and currency derivatives
 Elaborate the legal framework
 Discuss the current developments in the commodities market

Introduction

Ever since the dawn of civilization, commodity trading has occupied an integral place in the
lives of mankind. The very reason for this lies in the fact that commodities represent the
fundamental elements of utility for human beings. The term, commodity, refers to any material,
which can be bought and sold. Commodities in a market’s context refer to any movable property
other than actionable claims, money and securities. Over the years, commodities markets have
been experiencing tremendous progress, which is evident from the fact that the trade in this

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