NCDEX to launch spot trading in maize

As part of its strategy to develop an integrated spot market, the National Commodity & Derivatives Exchange (NCDEX) is planning to start online spot trading in maize in the next rabi season.

The exchange was envisaged to bring all the actively-traded agri-commodities in the futures segment under the spot market by the next financial year, said R Ramaseshan, managing director and CEO of NCDEX, at a press conference in Kolkata on Saturday.

The exchange offers trading in about 57 commodities in the futures segment, out of which 15 are traded actively. At present, it conducts spot trading in mustard and chana.

“We are looking at launching maize contracts in the spot market in the coming season, which is October-November. We will have three contracts, based on production, in Bihar, Andhra Pradesh and Karnataka,” said Ramaseshan.

Stake sale to Renuka Sugars
Renuka Sugars has picked up a 5 per cent stake in NCDEX, but the deal is awaiting an approval from market regulator Forward Markets Commission (FMC).

“This is a transaction between Renuka Sugars, Goldman Sachs and ICE (IntercontinentalExchange).

As per government guidelines, Goldman Sachs and ICE, each need to bring down their stake to 5 per cent. We are awaiting regulators’ approval,” said Ramaseshan.

The present shareholders of Ncdex are — Life Insurance Corporation, the National Stock Exchange, Nabard, Crisil, Iffco, Canara Bank and Punjab National Bank.