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Unit 5: Securities and Exchange Board of India

23. National Commodity & Derivatives Exchange Ltd. Notes
24. Haryana Commodities Ltd., Hissar
25. e-Commodities Ltd.
Of these 25 commodities exchanges the MCX, NCDEX and NMCEIL are the major Commodity
Exchanges.
Multi commodity exchange of India Ltd - MCX is an independent and de-mutualised exchange
based in Mumbai. Established on 10th November, 2003, it is the third largest bullion exchange
and fourth largest energy exchange in the world. Recognized by the Government of India it
deals in numerous commodities and carries out online trading, clearing and settlement processes
for commodity future market countrywide.
MCX COMDEX is India's foremost and sole composite commodity futures price index.

National Commodity & Derivatives Exchange of India Ltd (NCDEX) located in Mumbai, is a
public limited company incorporated on 23rd April 2003. Promoted by national level
establishments it is run by professional management. Regulated by the Forward Market
Commission with reference to futures trading in commodities, it trades in various commodities
online. The NCDEX is covered by:
1. Companies Act
2. Stamp Act
3. Contracts Act

4. Forward Commission (Regulation) Act.
National Multi-commodity Exchange of India Limited (NMCEIL) is considered the first
de-mutualised, online exchange dealing in numerous commodities. Incorporated on 20th
December 2001, it is promoted and run by:
1. Central Warehousing Corporation
2. National Agricultural Cooperative Marketing Federation of India Limited

3. Gujarat Agro Industries Corporation Limited
4. National Institute of Agricultural Marketing
5. Gujarat State Agricultural Marketing Board
6. Neptune Overseas Limited.

The Commodity Exchanges with their extensive reach embrace new participants, resulting in a
powerful price discovery process.

5.7 Summary

SEBI, established in 1988 and became a statutory body by the year 1992 with defined
responsibilities to cover both development & regulation of the market.
A Board by the name of the Securities and Exchange Board of India (SEBI) was constituted
under the SEBI Act to administer its provisions in 1992 with one chairman and five members.
SEBI has to be responsive to the needs of three groups, which constitute the market, viz.,
the issuers of securities, the investors and the market intermediaries.

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