COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION

COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION ABSTRACT Multi commodity substitute (MCX), a demutualised nationwide electronic multi commodity futures convince with its render in Mumbai began its operations in November 2003, while the organized commodity derivatives in India started as early as 1875, barely intimately a decade by and by they started in Chicago. Post freedom in 1960s, this futures avocation almost completely vanished from the Indian smirchets after the bans that were obligate on the futures trading. But, with the adoption of liberal economic policies since 1991 the futures trading was open up up, though with a difference. There was greater competition and the interests of members diverged from mavin another and from the exchange, thus the mutual disposal model was replaced by the demutualization model so as to change the exchange to act quickly and decisively to changes in the market. Since then, the commodities futures m arket in India has experience an unprecedented boom in wrong of the number of modernistic exchanges, number of commodities eachowed for derivatives trading as puff up as the honour of futures trading in commodities, which crossed the $ 1 Trillion mark in 2006.

However, there are some(prenominal) impediments to be submerge and issues to be decided for sustainable growing of the market. Debates are lighten on raising questions like, has the commodity exchange model, built with the documentary of regulating the prices of the commodities so as to attain both the producers and consumers, been thriving in ful filling this no profit quarry? Are all the ! producers able to benefit out of these commodity exchanges? This paper analyses the process of commodity exchanges in general, and MCX in fact on the producers, consumers, speculators and arbitrageurs considering the actual pitfalls in the functioning of these exchanges. 1. Introduction Multi Commodity exchange (MCX) , headquartered in the financial capital of...If you want to bugger off a full essay, club it on our website: OrderCustomPaper.com

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