Prelims level : Economics Mains level : General Studies-III: Technology, Economic Development, Bio diversity, Environment, Security and Disaster Management
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Why in News?

  • A panel constituted by the Securities and Exchange Board of India (SEBI) has recommended opening the commodity derivatives segment to all categories of institutional investors in a phased manner, to enhance the depth and liquidity of the commodity market.
  • The panel is of the view that in the next phase, institutional investors like foreign portfolio investors, banks, insurance companies and pension funds should be allowed in the commodity derivatives segment.


  • SEBI helps in the prevention of malpractices and fraudulent means through self-regulation of business and statutory regulations. It frames a code of conduct which has to be followed by bankers, brokers, etc. It also educates investors to evaluate and buy profitable securities.

Functions of SEBI:

  • Securities and Exchange Board of India is a quasi-legislative, quasi-judicial and quasi- executive body.
  • It can draft regulations, conduct inquiries, pass rulings and impose penalties.
  • Government has promulgated Securities Laws (Amendment) Second Ordinance, 2013 that would amend the Securities and Exchange Board of India Act, the Securities Contracts (Regulation) Act and the Depositories Act.
  • With these amendments, Securities and Exchange Board of India will be able to regulate any money pooling scheme worth Rs. 100 crore or more and attach assets in cases of non- compliance. The SEBI Chairman would have the authority to order “search and seizure
  • operations”. The amended law would also allow Securities and Exchange Board of India to seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being investigated by it. The law would further allow setting up of special courts to speed up SEBI related cases.

National Multi Commodity Exchange:

Establishment: 2002

Headquarter: Ahmedabad


  • Central warehousing corporation
  • Gujarat State Agricultural Marketing Board
  • Gujarat Agricultural Industries Corporation Limited
  • National Institute of Agricultural Marketing
  • Neptune Overseas
  • Punjab National Bank Trading Commodities:
  • Castor Seeds
  • Rapeseed
  • Mustard
  • Soybean
  • Seasame
  • Copra
  • Black Pepper
  • Gram
  • Gold
  • Aluminum
  • Copper
  • Lead
  • Nickel
  • Zinc
  • Rubber
  • Jute
  • Coffee
  • Isabgoal

Multi Commodity Exchange of India Ltd (MCX):

Establishment: Nov. 2003
Headquarter: Mumbai

  • Achievements: MCX holds 86% market share of commodity exchange in India. It operates
  • in more than 40 commodities. It is the world’s largest exchange in silver and gold. Promoters: National spot exchange limited, India energy exchange, Singapore mercantile exchange global board of trade, IBS Forex, National Bulk Handling Corporation, ticker plant lilited.

Trading Commodities:

  • Metal, Bullion, Fibre, Energy, Spices, Plantations, Pulses, Petrochemicals, Cereals
  • National Commodity and Derivatives Exchange Limited (NCDEX) Establishment: Dec. 2003

  • Headquarter: Mumbai

    • Promoters:   ICICI Bank, LIC, NABARD, CANARA BANK, PNB, CRISIL, IFFCO, Goldman
    • Sachs, Intercontinental Exchange, Renuka Sugar, J.P. Capital Commodity Traded: It facilitates the trade of 57 commodities.
    • Cereals and pulses
    • Fibres
    • Oil and oil seeds
    • Spices
    • Plantation products
    • Gold silver
    • Steel
    • Copper
    • Crude Oil
    • Brent Crude Oil
    • Polyvinyl chloride

    Indian Commodity Exchange (ICEX): It is a screen based online derivatives exchange for Establishment: Nov. 2009 Headquarter: Gurgaon

    • Promoters:  It has Reliance Exchange Next Ltd. as anchor investor and has MMCTC ltd. India Bulls financial Services Ltd, Indian Potash Ltd., KRIBHCO and IDFC.

    Commodity Traded:

    • Gold
    • Silver
    • Copper
    • Lead
    • Crude oil
    • Natural gas
    • Mustard
    • Soyabean
    • Soyabean oil
    • Jute
    • Menthe oil
    • Iron ore

    Shariah Index: The Bombay stock exchange and Taqwaa advisory and Shariah investment solutions have launched

    • Establishment: Dec. 2010 Headquarter: Gurgaon
    • This is the first Shariah index created in India utilizing the strict guidelines and local expertise of a domestic Shariah Advisory Board. The index comprises the 50 largest and most liquid shariah compliant stocks within BSE-500.

    Universal Commodity Exchange: It’s a national level electronic commodity exchange in

    • Establishment: April, 2013
    • Promoters: Commex Technology, IDBI Bank, IFFCO, NABARD and REC. Commodity Traded: It deals in 11 commodities.
    • Gold
    • Silver
    • Crude oil
    • Chana
    • Rubber
    • Mustard
    • Soya bean
    • Refined soya oil
    • Turmeric
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