Page 272 - DCOM507_STOCK_MARKET_OPERATIONS

Unit 13: Commodity Market

Notes
Exhibit 13.1: Multi-Commodity Exchange of India Limited (MCX)
MCX an independent and demutualised multi-commodity exchange has permanent
recognition from the Government of India for facilitating online trading, clearing and
settlement operations for commodity futures markets across the country. Key shareholders
of MCX are Financial Technologies (India) Ltd., State Bank of India, NABARD, NSE, HDFC
Bank, State Bank of Indore, State Bank of Hyderabad, State Bank of Saurashtra, SBI Life
Insurance Co. Ltd., Union Bank of India, Bank Of India, Bank Of Baroda, Canara Bank,
Corporation Bank. Headquartered in Mumbai, MCX is led by an expert management
team with deep domain knowledge of the commodity futures markets. Through the
integration of dedicated resources, robust technology and scalable infrastructure, since
inception MCX has recorded many first to its credit. Inaugurated in November 2003 by
Mukesh Ambani, Chairman & Managing Director, Reliance Industries Ltd., MCX
offers futures trading in the following commodity categories: agri-commodities, bullion,
metals – ferrous and non-ferrous, pulses, oils & oilseeds, energy, plantations, spices and
other soft commodities.
MCX has built strategic alliances with some of the largest players in commodities eco-
system, namely, Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors’
Association of India, Pulses Importers Association, Shetkari Sangathan, United Planters
Association of India and India Pepper and Spice Trade Association. Today, MCX offers
spectacular growth opportunities and advantages to a large cross section of the participants
including producers/processors, traders, corporates, regional trading centres, importers,
exporters, cooperatives, industry associations, amongst others. MCX being a nation-wide
commodity exchange offers multiple commodities for trading with a wide reach and
penetration and robust infrastructure, and is well placed to tap this vast potential.

Source: http://www.mcxindia.com

Exhibit 13.2: National Commodity & Derivatives Exchange Limited (NCDEX)
National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally
managed online multi-commodity exchange promoted by ICICI Bank Limited (ICICI
Bank), Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural
Development (NABARD) and National Stock Exchange of India Limited (NSE). Punjab
National Bank (PNB), CRISIL Limited (formerly the Credit Rating Information Services of
India Limited), Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Canara Bank
by subscribing to the equity shares have joined the initial promoters as shareholders of
the Exchange. NCDEX is the only commodity exchange in the country promoted by national
level institutions. This unique parentage enables it to offer a bouquet of benefits, which
are currently in short supply in the commodity markets. The institutional promoters of
NCDEX are prominent players in their respective fields and bring with them institutional
building experience, trust, nationwide reach, technology and risk management skills.
NCDEX is a public limited company incorporated on April 23, 2003 under the Companies
Act 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It has
commenced its operations on December 15, 2003.
NCDEX is a nation-level, technology driven demutualized on-line commodity exchange
with an independent Board of Directors and professionals not having any vested interest
in commodity markets. It is committed to provide a world-class commodity exchange
platform for market participants to trade in a wide spectrum of commodity derivatives
driven by best global practices, professionalism and transparency.
Contd...

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