Commodity trading in India has a long history. In fact,

commodity trading A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing i ...

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

started much before it started in many other countries. However, years of foreign rule,

drought A drought is defined as drier than normal conditions.Douville, H., K. Raghavan, J. Renwick, R.P. Allan, P.A. Arias, M. Barlow, R. Cerezo-Mota, A. Cherchi, T.Y. Gan, J. Gergis, D. Jiang, A. Khan, W. Pokam Mba, D. Rosenfeld, J. Tierney, an ...

s and periods of scarcity and government policies caused the commodity trading in India to diminish. In 2016, apart from numerous regional exchanges, India had Six national commodity exchanges namely,

Multi Commodity Exchange Multi Commodity Exchange of India Ltd (MCX) ( BSE: 534091) is a India’s first recognised commodity exchange. MCX is regulated by Securities Exchange Board of India (SEBI), which is the securities market regulator in India since 28th September ...

(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). In 2018 both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) launched trading in commodities. The

regulatory body A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government authority that is responsible for exercising autonomous dominion over some area of human activity in a licensing and regulatin ...

was erstwhile

Forward Markets Commission The Forward Markets Commission (FMC) is the regulatory body for the commodity market and futures market in India. It is a division of the Securities and Exchange Board of India, Ministry of Finance, Government of India. As of July 2014, it regul ...

(FMC) which was set up in 1953. As of September 2015, FMC was merged with the

Securities and Exchange Board of India The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...

, SEBI. After this merger, SEBI has ordered to exit many commodity exchanges.

References

External links

Securities and Exchange Board India
{{DEFAULTSORT:Commodity Trading In India