New Document top_band
 
Business Standard

FMC wants listed firms to disclose commodities hedging

The Committee had suggested that listed firms should disclose their exposure in commodities hedging

Read more on:    Fmc | Commodities | Sebi
Related News

Commodity markets regulator today said it will soon discuss with the Securities and Exchange Board of India () the possibility of making it mandatory for listed companies to disclose their exposure in hedging.
   
The companies hedge in commodities to offset risks arising out of fluctuations in raw-material prices."We will soon write to SEBI on this issue. In fact, this was the recommendation of our Sub-committee," Forward Markets Commission Ramesh Abhishek told PTI.
     
The Committee had suggested that listed firms should disclose their exposure in commodities hedging saying such information will benefit both the companies and the commodity market, he said.
     
Currently hedging in Indian commodity bourses is taking place on a very small scale with scope for development.
Efforts are being made to create awareness about its advantages, the regulator added.
     
Citing benefits of hedging, leading agri-commodity bourse NCDEX Managing Director In-charge Samir Shah said companies having exposure in commodities will be able to lock their business margins and protect themselves from price fluctuations in the market.
   
"The companies would also be able to access more cost effective financing from banks. The banks could lend more cost-effectively to companies who have hedged their commodities," he added.
     
There are 22 commodities bourses in the country, of which 6 are operating at national level. 

Read more on:   
|
|

Read More

Debt market needs structural push: Experts

Entities reluctant to get into new segment till settlement and margin issues are addressed

Quick Links

 

Market News

Sensex down 200 points; BHEL, Wipro dip 5%

Sensex was lower by 254 points at 26,017 mark and the Nifty declined by 80 points at 7,715

Goa Carbon slumps on closure notice for Paradeep plant

The company has received closure notice for Paradeep plant for non-compliance of stipulations

Indiabulls Housing Finance jumps on strong Q1 numbers

Indiabulls Housing Finance zoomed 6% after company's consolidated net profit jumped 21% at Rs 424 crore

Cairn India hits 11-month low

The stock tanked over 10% in two days after the company said that it will lend about $1.25 billion to its parent for two years.

TVS Motor falls second day in a row on lower than expected Q1 profit

The stock dipped 18% to Rs 147 from its record high of Rs 179 touched before the announcements of June quarter results.

Back to Top