Volume : VI, Issue : V, May - 2016

Issues with Commodity Trading in India

Khushboo Raheja

Abstract :

 The Indian economy is witnessing a mini revolution in commodity derivatives and risk management. Commodity options trading and cash settlement of commodity futures had been banned since 1952 and until 2002 commodity derivatives market was virtually non–existent, except some negligible activity on an OTC basis. Now in September 2005, the country has 3 national level electronic exchanges and 21 regional exchanges for trading commodity derivatives. As many as eighty (80) commodities have been allowed for derivatives trading. The value of trading has been booming and is likely to cross the $ 1Trillion mark in 2006 and, if all goes well, seems to be set to touch $5 Trillion in a few years. This paper analyses the obstacles that need urgent attention if the market is to realize its full potential.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Khushboo Raheja Issues with Commodity Trading in India Indian Journal of Applied Research, Vol.6, Issue : 5 MAY 2016

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