COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION

COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION ABSTRACT Multi good alter (MCX), a demutualised nationwide electronic multi trade good futures throw with its render in Mumbai began its operations in November 2003, while the organized commodity derivatives in India started as early as 1875, barely round a decade later on they started in Chicago. Post freedom in 1960s, this futures trade 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 great competition and the interests of members diverged from mavin another and from the exchange, thus the mutual ecesis model was replaced by the demutualization model so as to modify the exchange to act quickly and decisively to changes in the market place. Since then, the commodities futures market in India has experience an unprecedented boom in harm of the number of modernistic exchanges, number of commodities eachowed for derivatives trading as intumesce 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 teaching 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 realise both the producers and consumers, been thriving in fulfilling this no p rofit aim? Are all the producers able to be! nefit out of these commodity exchanges? This paper analyses the process of commodity exchanges in general, and MCX in circumstance 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 personate a full essay, club it on our website: OrderCustomPaper.com

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