COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION

COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION ABSTRACT Multi good turn (MCX), a demutualised nationwide electronic multi trade good futures convert with its headquarter in Mumbai began its operations in November 2003, while the organized commodity derivatives in India started as early as 1875, barely just about a decade afterwards they started in Chicago. Post liberty in 1960s, this futures duty almost completely vanished from the Indian smirchets after the bans that were obligate on the futures trading. But, with the adoption of liberal economic policies since 1991 the futures trading was open up up, though with a difference. There was greater competition and the interests of members diverged from mavin another and from the exchange, thus the mutual regime model was replaced by the demutualization model so as to modify the exchange to act quickly and decisively to changes in the foodstuff. Since then, the commodities futures market in I ndia has experience an unprecedented boom in terms of the number of modernistic exchanges, number of commodities eachowed for derivatives trading as hygienic as the honour of futures trading in commodities, which crossed the $ 1 Trillion mark in 2006.

However, there are several(prenominal) impediments to be submerge and issues to be decided for sustainable emergence of the market. Debates are lighten on raising questions like, has the commodity exchange model, built with the documentary of regulating the prices of the commodities so as to proceeds both the producers and consumers, been thriving in fulfil ling this no profit neutral? Are all the pr! oducers able to benefit out of these commodity exchanges? This paper analyses the process of commodity exchanges in general, and MCX in fact on the producers, consumers, speculators and arbitrageurs considering the actual pitfalls in the functioning of these exchanges. 1. Introduction Multi Commodity exchange (MCX) , headquartered in the financial capital of...If you want to lease a full essay, club it on our website: OrderCustomPaper.com

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