COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION

COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION ABSTRACT Multi good switch over (MCX), a demutualised nationwide electronic multi good futures substitution with its central office in Mumbai began its operations in November 2003, while the organized good derivatives in India started as early as 1875, barely some a decade after they started in Chicago. Post independence in 1960s, this futures transaction 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 great competition and the interests of members diverged from mavin another and from the exchange, thus the mutual brass section model was replaced by the demutualization model so as to enable the exchange to act quickly and decisively to changes in the food market. Since then, the commodities futures mar ket in India has experience an unprecedented boom in call of the number of modernistic exchanges, number of commodities eachowed for derivatives trading as come up 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 learning 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 avail both the producers and consumers, been thriving in fulf illing this no profit design? Are all the p! roducers able to benefit out of these commodity exchanges? This paper analyses the process of commodity exchanges in general, and MCX in feature 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 outwit a full essay, club it on our website: OrderCustomPaper.com

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