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Indian markets have opened a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities are the best option.

Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. Retail investors, who claim to understand the equity markets may find commodities an unfathomable market. But commodities are easy to understand as far as fundamentals of demand and supply are concerned.

There are two state-of-the-art commodity exchanges viz. MCX and NCDEX in India which are handling the heavy volumes and ever increasing inclination of retail investors into this segment. A few other exchanges have also evolved like ICEX, National Spot Exchange etc.

National Spot Exchange is a joint venture of Financial Technologies (India) Ltd. (FTIL) and National Agricultural Cooperative Marketing Federation of India Limited (NAFED).Trading at this platform is as good as tading in cash segment of Equities. This is an upcoming better platform for retail investors to invest in commodities market. A few salient features of this exchange are:

  • Single day trading contracts
  • Intra day trading with settlement of obligation on net basis
  • All positions outstanding at end of the day resulting into compulsory delivery
  • Demat delivery facility available
  • Fungibility of delivery between National Spot Exchange and MCX with common ICIN nos
  • Loan facility against pledge of demat / warehouse receipt
  • Cash futures arbitrage opportunity

Commodity trading in India is still at its early days and thus requires an aggressive growth plan with innovative ideas. Liberal policies in commodity trading will definitely boost the commodity trading. The commodities and future market in the country is regulated by Forward Markets commission (FMC).

Chandrakala family serves its commodity segment customers under the umbrella of Hem Multi Commodities Pvt. Ltd. We are also the Trading Cum Clearing Member of ICEX.

Chandrakala family will leave no stone unturned to deliver trustworthy services.


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