In the recent past, there had been news doing the rounds of a merger between NCDEX (National Commodities and Derivatives Exchange Limited) and NSE (National Stock Exchange). As of 26 November 2021, the report is close to being confirmed and announced. Find out more details regarding this story below:
NCDEX stands for the National Commodities and Derivatives Exchange Limited. This is India’s leading agriculture commodity exchange and has had a market share of around 80% since 2019. This exchange has a broad base of commodity trading products, including spices, pulses, and guar, keeping the domestic market in mind.
NCDEX was established as a Public Limited company back in April 2003. Presently, some of its shareholders include:
To sum it up, SEBI regulates NCDEX, and its headquarters are in Mumbai. It offers futures and options contracts for commodities on the platform.
Market experts believe domestic institutional investors need to participate in agri-commodities trade, and they may do so once the merger comes through. After the merger, both foreign and domestic companies may begin to trade on NCDEX.
A merger plan has been going around for the past two years between NCDEX and NSE. Meanwhile, NCDEX had even decided to go public, but COVID-19 delayed those plans. As things stand now, analysts expect the merger to be announced any time soon.
However, there exists a problem with trading in agri-futures, as the trade is concerned with only a few products like chana, soya, mustard, guar, etc. So, only time will tell if this is a beneficial move or not.
Ans. The authorised capital of NCDEX is Rs. 70,00,00,000.
Ans. NCDEX offers the following trading products:
Ans. NSE is likely to acquire NCDEX for Rs. 900-1,000 crores.
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