NCDEX (National Commodity Derivatives Exchange Limited)

The National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity exchange based in India

It is an important topic for the IAS Exam. This article will talk about the functions and structural organisation of NCDEX. Candidates can also download the notes PDF at the end of this article.

What is the National Commodity & Derivatives Exchange Limited (NCDEX)?

National Commodity & Derivatives Exchange Limited (NCDEX/ the Exchange) is an Indian-based agricultural product exchange a large market share in the agricultural products segment.

It is composed of a Board of Directors with experience in the agricultural products market. The NCDEX main objective os to provide an exchange platform for market players seeking to trade in agricultural products.

It is a public limited company that was incorporated on 23 April 2003 under the Companies Act, 1956, beginning operations on 15 December 2003.

To know more about the Indian Companies Act, visit the linked article.

How is the NCDEX regulated?

The NCDEX is under the regulatory authority of the Securities and Exchange Board of India (SEBI). The exchange is controlled by various laws under the Indian Penal Code such as the Securities Contracts (Regulation) Act, 1956, Companies Act, Contract Act and various other legislations.

NCDEX headquarters are located in Mumbai and offer facilities to its members from the centres located throughout India.

To know more about the Securities and Exchange Board of India, visit the linked article.

What does NCDEX primarily trade?

The National Commodity & Derivatives Exchange Limited has a broad-based array of permitted agricultural commodities that amount to a total of 23 (which is also the highest). These commodities include items such as pulses, spices and guar, which are not traded on any platforms in the global scenario and are economically relevant to India, forming an important component of India’s global trade.

To know more about Agriculture in India, visit the linked article.

Relevant Questions regarding NCDEX

What is the difference between MCX and NCDEX?

The MCX (Multi Commodity Exchange) of India Ltd is an electronic commodity futures trading exchange. While the NCDEX (National Commodity And Derivative Exchange) Limited is an online multi-commodity trading exchange.

NCDEX – UPSC Notes:- Download PDF Here

How many commodity markets are there in India?

As of 2016, apart from numerous regional exchanges, India has Six national commodity exchanges namely, Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), Indian Commodity Exchange (ICEX), National Multi Commodity Exchange (NMCE), ACE Derivatives Exchange (ACE) and Universal Commodity Exchange(UCX).

You can find more topics by visiting the UPSC Syllabus page. For more preparation related articles, visit the following links.

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