M.J. PANCHOLIA COLLAGE OF COMMERCE SYBAF

FINANCIAL MARKET OPERATION COMMODITY MARKET

PROF.NITISH DESAI

Roll No. Member’s Name

27 KAUSHIK NEGANDHI50 TRUPTI SHUKLA58 ANERI VAKHARIA04 DHAVAL GAMI 01 VRUSHTI ASHAR

What is Commodity Market ?

Commodities :-

Commodities :-

Structure of Commodity Markets:-Ministry of Consumer

Affairs

Commodity Exchanges

National

Exchange

Regional Exchang

e

NCDEX MCX NMCE NBOT 28 Other Regional

Exchanges

1) To Raise Liquidity to Contract.2) To Promote Transparency in the Discovery Market

Price.3) To Improve the Mechanism of Government

Regulation.4) To Develop Wholesale Market.5) To Provide Equal Access to the Market.6) To Give Additional Economic Impetus to the Agent

of the Market.

Aims of Commodity Exchange.

1) It Reduces Transaction Cost.2) More Efficient Promotion.3) Facilitate Trade.4) Arrangement of Conditions.5) Registration of Transaction at the Exchange.6) Examination.7) Reveling of Supply & Demand of Goods.8) Quotation.

Functions of Commodity Exchange.

1.Diversification.2.Fundamental Link.3.Time.4.Commodity Markets are Harder.5.Inflation.6.Low Margin.7.Online Trading.

Advantages of Investing in Commodities :-

1.The Performance of Commodities & Commodity Indices are Unpredictable.

2.A physical investment in Commodity is exposed to the “Cost of Carry”.

3.Additional Risks.4.To a roll yield.5.Illiquid future contracts.6.A commodity index sponsor may

change the commodity index.7.Substituted in certain circumstances.

Risk of Investing in Commodities :-

COMMODITY FUTURE IN INDIA

Why Commodity?Diversificatio

n and risk Management

High Leverages

Less Manipulations No Charges

Low cost Business

Opportunities

Hedging

Arbitrage

Trading • Intra Day• Positional

IMPORTANCE OF MCX

How is the value of the trade calculated? Is Sales Tax applicable on all

trades? Is the concept of trading in commodity futures new in India? What are commodity futures? What is dematerialised or demat form of commodities?

What is the difference between delivery in physical form and delivery in demat form?

  What is the pay-in and pay-out time for e-Series contracts?

  Who invests in commodities?

How Commodity can be an opportunity to enhance your financial front?