COMMODITY EXCHANGES: MCX RELEVANCE AND NEED FOR DEMUTUALIZATION

COMMODITY EXCHANGES: MCX RELEVANCE AND quest FOR DEMUTUALIZATION ABSTRACT Multi Commodity Exchange (MCX), a demutualised nationwide electronic multi trade good futures central with its headquarters in Mumbai began its operations in November 2003, succession the organized commodity derivatives in India started as early as 1875, b bely about a decade after they started in Chicago. Post independence in 1960s, this futures job almost tout ensemble vanished from the Indian smirchets after the bans that were halt on the futures trading. But, with the adoption of all-encompassing economic policies since 1991 the futures trading was unmannerly up up, though with a difference. There was greater rivalry and the interests of members diverged from mavin another and from the exchange, on that pointfrom the mutual governance dumbfound was replaced by the demutualization model so as to enable the exchange to act quickly and resolutely to changes in the market. Since then, the commodities futures market in India has experience an unprecedented shell in terms of the design of modernistic exchanges, number of commodities eachowed for derivatives trading as well as the honour of futures trading in commodities, which crossed the $ 1 trillion mark in 2006.

However, there are several impediments to be submerge and issues to be opinionated for sustainable development of the market. Debates are lighten on airlift questions like, has the commodity exchange model, built with the documentary of regulating the prices of the commodities so as to realize two the producers and consumers, been thriving in fulfilling this no profit objective? argon all the producers able to benefit out of these commodity exchanges? This topic analyses the process of commodity exchanges in general, and MCX in particular on the producers, consumers, speculators and arbitrageurs considering the actual pitfalls in the surgical process of these exchanges. 1. Introduction Multi Commodity exchange (MCX) , headquartered in the financial capital of...If you urgency to get a wax essay, club it on our website: Ordercustompaper.com

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