In another effort to promote commodities market, the National Spot Exchange Ltd, an arm of the Multi Commodity Exchange of India, has decided to launch online trading in seasame seeds, cotton, groundnut and castor seeds by September.
The exchange also plans to start futures trading in electricity, carbon credit, coal, freight index, weather index, real estate index and rain index after the amendment to the Futures Contracts Regulation Act is passed by the Parliament.
According to MCX, the exchange has the confidence for venturing into newer and newer areas. It is waiting for the amendments to the FCRA Act to be passed by the Parliament.
The MCX has also taken the initiative to organise entire spot markets of the country which of the size of Rs 10 lakh crore (10 trillion).
The exchange's attempt is to initiate online trading in spot and thereby integrate all the spot markets in the country.
The buyers and sellers will, therefore, have an option for price discovery in different parts of the country, said National Spot Exchange Ltd.
The proposed online trading in four select agri commodities will be launched in September in four places in Gujarat.
The exchange will reflect the prices of these four commodities from four places in Gujarat. The buyer or the seller can contact us online from any part of the country.
They will be given receipts online on purchase. They can hold their stocks in the exchange's warehouses on payment before they are finally lifted.
The MCX believes that online integration and trading in spot markets will help price discovery at the base.