NCDEX gets FMC nod to launch forward trade in 7 commodities

Forward Markets Commission today gave approval to agri-commodity bourse NCDEX to launch forward contracts in additional seven commodities including some pulses.
The approval has been given to launch both transferable and non-transferable specific delivery forward contracts at a fixed price in urad, tur, yellow peas, yellow soyabean meal, pepper, RBD palmolein and bajra, FMC said in a circular today.
"Once the contracts are commenced, no terms of the contract specifications should be changed without prior approval of the commission," it added.
With this, the total number of agri-commodities available for forward trading has increased to 26 on NCDEX platform.
In September 2014, NCDEX had launched trading in forward contracts. Initially, it offered forward trading in sugar and maize and gradually expanded the product basket.

A forward contract is a bilateral agreement between two parties to buy or sell an asset or a commodity of specified quantity and quality at a future date on a mutually agreed delivery price.
Forward contracts are different from a spot contract or a futures contract.