NCDEX's agri index launch by Diwali, chooses NSE IT to manage product

The index will have 10 Sebi-approved agri commodities. Once open for trading, the NCDEX index for agri and MCX index for non-agri commodities will theoretically complete a basket

Derivatives trading in commodity indices will start in two-three months, with the National Commodities and Derivatives Exchange (NCDEX) also joining the Multi Commodity Exchange (MCX) in launching its indices for trading.

The NCDEX is finalising with NSE IT, an indices company, to prepare its agri index, which meets the regulatory norms for tradable indices. 

The exchange has designed a composite agricultural commodities index, with a few sectoral indices. 

The plan is to begin with an agri index.

Trading will begin after approval from the Securities and Exchange of India (Sebi) is secured.

The MCX had prepared indices along with Thomson Reuters two years back