The National Commodity and Derivatives Exchange (NCDEX), which plans to set up electronic spot exchanges in five states soon, has commenced a recruitment drive for membership across the country. | |
| NCDEX has already formed a 100 per cent subsidiary, NCDEX Spot Exchange (NSEL), to provide an online trading platform for spot trading in commodities. |
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| NSEL has invited applications for Trading-cum-Clearing Membership (TCM) and Trading Membership (TM) from all over India and the membership drive is in full swing, an exchange official told PTI. The TCM membership shall entitle members to trade both for themselves and on behalf of their clients and also clear the trades done through other trading members. |
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| They, however, need to clear their trades through another TCM or a Professional Clearing Member (PCM). |
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| The exchange has asked those interested to pay an interest-free security deposit of Rs five lakh each for TCM membership. They will also have to pay Rs one lakh as interest-free security deposit for clearing the trade of each trading member, according to an exchange circular issued earlier. |
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| The net worth requirement for TCM membership is fixed at Rs 50 lakh, while for trading membership it is Rs 5 lakh, the exchange said. The exchange is all set to launch the country's first spot exchange in Bihar in September with trading in maize contracts before expanding to other crops. |
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| It is also in talks with the state governments of West Bengal, Rajasthan, Karnataka and Andhra Pradesh to launch spot exchanges once the necessary permissions are received, the official said. |
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| "Since agriculture is a state subject, an electronic spot exchange cannot be launched at the national level. We seek permission from each state separately," he said. |
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| "We have received all the necessary clearances from the Bihar government to start the first auction by September," NCDEX Managing Director P H Ravikumar had said earlier. |
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| It has started creating adequate delivery infrastructure in Bihar and since delivery holds the key for spot trading unlike futures exchanges, the NCDEX is now enlisting a number of warehouses across the state. |
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| The exchange is also considering launching spot trading in Maharashtra. "Although the government has passed the Act (to allow spot trading), it has not yet framed the rules, which is delaying the process of setting up a spot exchange in the state," Ravikumar had said. |
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| Agricultural commodities to be taken up for spot trading in Rajasthan are mustard, pulses and guarseed, whereas in West Bengal it would be jute, potatoes and rice. |
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