COMMODITY FUTURES MARKET IN

INDIA.

GROUP MEMBERS

NAMES ROLL NO:- PRATIK SINGH 44. SWEETY SINGH 45. SIDDHI UDANI 46. RAMANDEEP WADHWA 47. YUGVEER SINGH 48.

INTRODUCTION.

WHAT IS COMMODITY MARKET? COMMODITY MARKET IS A MARKET WHERE RAW OR PRIMARY PRODUCTS ARE EXCHANGED . THESE RAW COMMODITIES ARE TRADED ON REGULATED COMMODITIES EXCHANGES, IN WHICH THEY ARE BOUGHT AND SOLD IN STANDARDIZED CONTRACTS.

TYPES OF COMMODITIES. AGRICULTURAL COMMODITIES.

METALLURGICAL COMMODITIES

ENERGY COMMODITIES

STRUCTURE OF COMMODITIES MARKET

BENEFITS TO INVESTORS, CONSUMERS,MANUFACTURES,

PRODUCERS. PRICE RISK MANAGEMENT.

PRICE DISCOVERY.

HIGH FINANCIAL LEVERAGE.

COMMODITIES AS AN ASSET FOR DIVERSIFICATION OF PORTFOLIO RISK.

BENEFITS CONTD….. COMMODITY DERIVATIVES MARKETS ARE EXTREMELY TRANSPARENT.

AN OPTION FOR HIGH NET WORTH INVESTORS.

USEFUL TO THE PRODUCER.

USEFUL TO CONSUMER.

BENEFITS CONTD… CORPORATE ENTITIES CAN BENEFIT.

USEFUL TO EXPOTERS.

IMPROVED PRODUCT QUALITY.

CREDIT ACCESSIBILITY.

FUTURE PROSPECTS OF INDIAN COMMODITY

MARKET.

THE FMC HAS TAKEN SEVERAL INITIATIVE FOR ESTABLISHMENT OF NMCE IN INDIA WITH THE EXPECTATION THAT THE TRADING VOLUME WILL GROW.

THE VOLUME IS LIKELY TO SURGE FURTHER AS THE LIST OF COMMODITIES TRADED ON THE EXCHANGE CONTINUES TO EXPAND.

IT IS EXPECTED THAT FII’s ,MUTUAL FUNDS AND BANKS MAY BE ABLE TO PARTICIPATE IN COMMODITY DERIVATIVES MARKET IN THE NEAR FUTURE.

COMMODITY TRADING , COMMODITY FINANCING ARE GOING TO BE RAPIDLY GROWING BUSINESS.

THE GOI HAS TAKEN INITIATIVES SUCH AS :-

i. LIFTING BAN ON FUTURE TRADING.ii. INTRODUCING MODERN INFRASTRUCTURE.iii. SYSTEMS SUCH AS ONLINE TRADING. iv. RELAXED LEGAL FORMALITIES FOR THE

PARTICIPANTS. WHICH INTURN HAS

WIDEN THE SCOPE OF COMMODITIES DERIVATIVES TRADING IN INDIA.

THE LAUNCH OF OPTION TRADING ON COMMODITY FUTURES IS ALSO EXPECTED AFTER THE AMENDENTS TO THE FORWARD CONTRACT REGULATION ACT (1952).

THE PRESENT SHIFT IN TREND IN COMMODITY TRADING COMPLIMENTED BY THE GLOBAL INCREASE IN DEMAND WILL CERTAINLY HOLD A PROMISING FUTURE FO THE INVESTMENTS IN THIS SEGMENT.

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