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Source Name: NCDEX

NCDEX Introduces a New Category of Membership for its Forward Segment – Offers Special Concessions for FPOs

Aug 11, 2014   17:14 IST 
Mumbai, Maharashtra, India

NCDEX, the leading commodity exchange, today announced that it has introduced a new membership category for the soon-to-be launched forwards segment on its national level electronic platform. With the launch of forwards contracts on its platform, NCDEX is set to enhance trading efficiency in the market segment that forms more than half of the country’s total commodity trade. In order to make markets more accessible to the farmers and traders in mandis, a new membership category known as `Commodity Participant Members (CPMs)’ is being introduced. Individuals, Businesses, co-operative societies, Farmer Producer Organisations (FPO’s), etc. who want to buy / sell commodities for their business requirements are eligible for this membership which can be used to trade on the forwards segment alone.


Mr. Samir Shah, MD & CEO, NCDEX said “With exchange traded forwards, NCDEX is attempting to reach untapped segments and extend the considerable expertise it has developed over the years in creating value in the agricultural markets. With this new membership category, we will be bringing national markets to farmers, mandi traders and buyers. This initiative is a path breaking approach to bring real inclusiveness in the real economy in commodities.”


The minimum net-worth requirement for a CPM is much lower at Rs. 5 lakh and the minimum base capital has been waived off. A CPM will be required to pay one-time admission fee of Rs. 50,000 and an annual membership fee of Rs. 10,000.


In order to ensure that the farmers derive benefit from this national level marketplace; a further concessionary membership – Krishi Bandhu is being given to government certified Farmer Producer Organisations (FPO’s), who will not only be exempted from the minimum net-worth criteria but will also enjoy a waiver of the admission fee. FPOs will only have to pay lower annual membership fee of Rs. 5000. The membership of the forwards segment will be extended to the existing NCDEX and NCDEX Spot members, who can now expand their range of services to include forwards too.


NCDEX is providing opportunity for physical market players to reduce the counter-party default risks by executing their bilateral trade under the regulatory framework of the Exchange without giving up their comfort of trading in contracts customized to their needs. Unlike the futures contracts wherein the contract specifications are standardised, the ‘Exchange traded forward contracts’ will allow trading parties to negotiate quantity and also the quality of the underlying commodity, date, place of delivery and settlement price as per their mutual requirements.



As India’s leading online exchange, NCDEX is where customers repose trust. It offers the widest range of benchmark products across agriculture, metals and precious metals. NCDEX brings buyers and sellers together through its electronic trading platform. With a widely held shareholding, it enjoys the distinction of being the only exchange in the country promoted by national level institutions. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nationwide reach, technology and risk management skills.

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