Multi Commodity Exchange wants partial hedging for metals on local bourses

The Multi Commodity Exchange (MCX) has asked the markets regulator to ensure that all major metals and mining companies hedge a small part of their total hedging on Indian exchanges. 

This step is to address falling volumes in its metals segment, down 30 per cent this financial year. The fall was a sequel to the Securities and Exchange Board of India mandating delivery-based settlement. 

Currently, these large companies (such as Hindalco) hedge all their risks in metal prices on bourses abroad, such as on the London Metal Exchange. MCX, in an interaction with regulators, had proposed that major mining and