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Stock Market Operations

Notes NCDEX is regulated by Forward Market Commission in respect of futures trading in
commodities. Besides, NCDEX is subjected to various laws of the land like the Companies
Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other
legislations, which impinge on its working. NCDEX is located in Mumbai and offers
facilities to its members in more than 390 centres throughout India. The reach will
gradually be expanded to more centres. NCDEX currently facilitates trading of thirty six
commodities – cashew, castor seed, chana, chilli, coffee, cotton, cotton seed oilcake, crude
palm oil, expeller mustard oil, gold, guar gum, guar seeds, gur, jeera, jute sacking bags,
mild steel ingot, mulberry green cocoons, pepper, rapeseed, mustard seed, raw jute, RBD
palmolive, refined soya oil, rice, rubber, sesame seeds, silk, silver, soyabean, sugar, tur,
turmeric, urad (black matpe), wheat, yellow peas, yellow red maize and yellow soybean
meal. At subsequent phases trading in more commodities would be facilitated.

Source: http://www.ncdex.com

13.4.3 Top 10 Commodities

Taking together the turnover in commodities futures seen at the above three multi-commodity
exchanges during the two-week period 15-09-2005 to 30-09-2005, the following emerge as the
top-10 commodities in terms of value of futures trading done.
Table 13.1: Top 10 Commodities for Futures Trading
Commodity Turnover in $ Millions

Guar seed 4,432.71
Gold 4,082.15
Silver 3,869.36

Crude oil 3,380.13
Chana (chick peas) 2,100.15
Urad (Black Legume) 624.71
Soya oil 478.28
Gur (Jaggery: cane sugar) 369.72

Guar Gum 345.08
Tur (Lentils) 329.35

Note: The local currency values were translated into USD using the monthly average exchange rate
INR43.8445 per USD prevailing in September 2005.

Self Assessment

Fill in the blanks:
12. The biggest advantage of having an exchange-based platform is the ………………………...
13. A wider reach ensures greater participation, which results into a more efficient
………………………... discovery mechanism.
14. ………………………... facilitates speculation by providing opportunity to people, although
not involved with the commodity.

15. Traders may exploit ………………………... opportunities that arise on account of different
prices between the two exchanges or between different maturities in the same underlying.

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