The National Commodity and Derivatives Exchange (NCDEX) Ltd. has finalised bye-laws, membership criteria and contract details for introducing futures trading in 9 commodities.
It is awaiting green signal from the regulator Forward Markets Commission (FMC), PH Ravikumar. managing director of NCDEX said.
NCDEX will initially start trading in gold, silver, mustard seed, mustard oil, soya bean, soya oil, cotton, RBD Palmolein and crude palm oil (CPO).
The exchange has also finalised membership criteria under which a trading cum clearing membership (TCM) can be obtained at a total cost of Rs 31 lakh and a networth of Rs 50 lakh while professional clearing membership (PCMs) can be obtained at a cost of about Rs 51 lakh on a networth of Rs 50 crore NCDEX will allow membership to any person / association of persons / partnerships / co-operative societies / Banks / corporates / foreign individuals, firms etc, who is / are above 21 years of age are eligible to become members of the exchange.
The minimum educational qualification being stipulated is graduation or equivalent qualification.
In case of TCMs and PCMs, the interest free cash security deposit would be Rs. 15 lakh and Rs. 25 lakh, respectively.
For both the collateral security deposit would be Rs. 15 lakh and Rs. 25 lakh, respectively, annual subscription charges would be Rs. 0.50 lakh and Rs. 1 lakh, respectively and advance minimum transaction charge would be common for both at Rs. 0.50 lakh.
The dominant promoter group for the membership will need to hold 51 per cent of the equity share capital of the private limited company or a public limited company with a net worth of less than Rs. 10 crore.
NCDEX has also stipulated that applicants who are defaulters or who have been convicted of fraud / dishonesty, or has been expelled from other stock / commodity exchanges will not be admitted to NCDEX
NCDEX has recommended a minimum office space of 500 sft for each member and will give preferences to professionals as well as specialists in food /dairy technology, agricultural science, mining, engineering, etc, as well as individuals / entities with high net worth or dispersed client network.
Besides nominees from the partners, the board of the exchange will have a maximum of about 10-11 directors on the board.
Ravi Narain, managing Director of NSE, SB Marthur, chairman of LIC, Dr. Y. Nanda, chairman of Nabard, BV Bhargava, chairman of Crisil, and Dr. Ajay Shah, SH Bhojani and Lemon Rutten, representatives of UNCTAD, have already been inducted on the board.
The products and contracts will be juxtaposed to keep in synchronisation with the respective global commodity exchanges.
