NCDEX Spot Exchange to start operations in four statesJuly 19th, 2008 - 6:29 pm ICT by IANS
Chennai, July 19 (IANS) The newly formed NCDEX Spot Exchange Ltd will start spot markets for commodity trading in Maharashtra, Karnataka, Kerala and Bihar in October, a top official said Saturday. “In these states there is no need to acquire a license to trade in agricultural commodities and hence we will start the spot markets there first,” R. Ramaseshan, managing director and CEO of NCDEX Spot Exchange, told reporters here.
NCDEX Spot Exchange, floated with an authorised capital of Rs.90 million and a paid up capital of Rs.500,000, is a wholly-owned subsidiary of the Rs.900 million National Commodity and Derivatives Exchange Ltd (NCDEX).
“If need be, we may invite a strategic investor who can add value to the business and offer equity stake in the NCDEX Spot Exchange,” Ramaseshan added.
The spot market will be a delivery market that will help farmers realise realistic prices for their produce.
“The current open outcry system prevalent in agricultural product markets is against farmers. On the other hand, an electronic exchange would help farmers know the prices at different markets and accordingly trade,” he explained.
NCDEX Spot Exchange will start its operations in few commodities and later increase the number of tradable items.
According to Ramaseshan, necessary tie-ups have to be made for warehousing and assaying the quality of the commodities traded.
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