Question : NATIONAL MULTI-COMMODITIES EXCHANGE



(a) whether the Union Government have set up a “National Multi-Commodities Exchange” to give momentum to forward/future trading;

(b) if so, the details thereof;

(c) whether the Exchange has become operational; and

(d) if so, the details thereof and the commodities identified/selected for trading in the proposed Exchange?

Answer given by the minister

MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI SHARAD YADAV)

(a) to (d): The Government has given approval for setting up four Nation-wide Multi Commodity Exchanges in the corporate sector out of which the National Multi Commodity Exchange of India Ltd., (NMCEIL) Ahmedabad has been given final recognition and three others viz. the National Board of Trade (NBOT), Indore the National Commodity and Derivatives Exchange Ltd.(NCDEX), Mumbai and the Multi Commodity Exchange(MCX), Mumbai have been given in principle approval to complete the procedural formalities. The Exchanges are promoted by private and public sector corporate bodies. Government gives approval/recognition since these Exchanges are regulated under the Forward Contract (Regulation) Act, 1952. the NMCEIL, Ahmedabad started operations in November, 2002 trading in 47 items comprising the edible oil block, aluminium, nickel, sugar, rubber, gur, pepper, lead, copper, tin, zinc, gram, guarseed and sacking. The other three Exchanges are in the process of completing necessary infrastructural and statutory formalities, though the Exchange at Indore is already operating with large trading, as a regional Exchange. Once they complete the formalities they will be applying for permission for trading in specific commodities.