NCDEX Spot (NSPOT) launches Chana Contract
MUMBAI: NCDEX Spot Exchange Ltd. (NSPOT) has launched compulsory delivery contract of Chana Kantawala on its electronic platform from April 21, 2009. The delivery center for the contract would be at Indore with minimum trading lot of 10MT. All trades on the exchange are guaranteed by the exchange for delivery and payments. The tick size of the contract will be Re 1 per quintal.
Chana contracts would be traded between 1000 to 2100 hours, Monday through Friday and between 1000 to 1400 hours on Saturdays on NSPOT.
Chana sellers would deposit the assayed commodity in NSPOT pre-notified accredited warehouses before putting sell orders. The buyer would deposit prescribed margin for the relevant type of contract with NSPOT through a member of NSPOT before putting the quotes. The online buy and sell orders would be matched on real time basis by process of time and price priority and get settled. All trades outstanding at the end of the day would result into delivery obligations on settlement day. Thus, only those sellers who own the commodity would only be allowed to sell on the platform thus allowing only serious players.
Mr R Ramasheshan MD & CEO, NCDEX said “NCDEX is very happy with the initiative by NSPOT and is optimistic about the success of the concept. After successful launch of sugar and pepper this move of NSPOT will benefit the farmers of the Indore and Rajasthan immensely.”
Thus NCDEX Spot Exchange has created real time, online, transparent and vibrant spot platform for chana in India. The contract will allow participants from all over the country to buy chana, thereby enabling producers in MP and Rajasthan to discover best price for their chana traded on NSPOT.
This initiative is widely supported by all the major value chain participants in the region and in the country.
NCDEX Spot exchange would be launching various agricultural and non-agricultural contracts in coming months.
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