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The National Stock Exchange of India Ltd. (NSE) building stands in the Bandra Kurla Complex (BKC) in Mumbai, India, on Monday, Oct. 12, 2020. India�s financial capital saw its biggest power�outage�in decades because of a grid failure, disrupting transport networks and hitting trading volume in equities and bond markets. Photographer: Dhiraj Singh/Bloomberg (Bloomberg)
The National Stock Exchange of India Ltd. (NSE) building stands in the Bandra Kurla Complex (BKC) in Mumbai, India, on Monday, Oct. 12, 2020. India�s financial capital saw its biggest power�outage�in decades because of a grid failure, disrupting transport networks and hitting trading volume in equities and bond markets. Photographer: Dhiraj Singh/Bloomberg (Bloomberg)

NSE to launch first agricultural commodity futures contract next month

  • The contract is a monthly expiry cash settled futures contract with a trading lot size of 10 metric ton (MT) and price basis as Kandla

NEW DELHI : Leading stock exchange NSE on Monday said it will launch its first agricultural commodity futures contract for crude degummed soybean oil on December 1.

The contract will facilitate the soybean oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price, the National Stock Exchange (NSE) said in a statement.

The contract is a monthly expiry cash settled futures contract with a trading lot size of 10 metric ton (MT) and price basis as Kandla.

Vikram Limaye, MD and CEO of NSE, said the exchange is dedicated to deepen the Indian commodity markets by providing convenient and cost-effective onshore hedging products.

"India being one of the largest consumers of edible oils in the world, requires an efficient hedging mechanism for crude soybean oil as well. This product will work as a perfect price risk management tool for the market participants and the commodity ecosystem at large," he added.

The Solvent Extractors' Association of India (SEA) Executive Director B V Mehta said the exchange traded derivatives contracts are a very useful tool that make price risk management convenient and easy for the industry.

"More such futures contracts should be launched going ahead so that we can have a vibrant commodity markets ecosystem in India," he added.

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