ABOUT INDIAN COMMODITY EXCHANGE LIMITED
INDIAN COMMODITY EXCHANGE LIMITED is a recognized Commodity Exchange of India regulated by SEBI (Securities and Exchange Board of India), having demutualized corporate structure, online trading, clearing, and settlement with best practices. Indian Commodity Exchange Limited aims to fulfill the objective of serving the benefits of the price discovery and risk management of the commodity derivatives market to the producers of that commodity.
In 2017, Indian Commodity Exchange Limited started its operations after obtaining permission from SEBI to re-commence its trading operations. In August 2017, it launched the Diamond Derivative contract of 1 carat. Indian Commodity Exchange Limited became the first exchange to launch the Diamond Derivative contract. In August 2018, the exchange launched Steel Long contract. In July 2019, the PaddyBasmati derivative contract was launched. Today, the Exchange has 14 commodities for trading on its platform. In December 2019, the ICEX MF Platform was launched, a mutual fund platform, to facilitate transactions in Mutual Funds.
The Exchange has outsourced the services of clearing, settlement, deliveries, risk management services, and any other applicable post-trade services to Metropolitan Clearing Corporation of India Limited.
Indian Commodity Exchange Limited is the first Exchange in India to adopt a global hi-tech platform that ensures automatic and seamless switchover from its Data Center (DC) to the Disaster Recovery (DR) site with zero data loss in case of exigencies. The technology platform has highly optimized processing techniques, which enables the system to handle very large orders with latencies under 300 microseconds.
Indian Commodity Exchange Limited has a network of 138 SEBI registered members, having 1298 Authorized Persons, operating through 3340 terminals including Computer to Computer Link (CTCL) across 329 cities/towns across India as of 31st March 2020.
INCORPORATION DETAILS
|
CIN |
U67120GJ2008PLC99142 |
|
Registration Date |
18 August 2008 |
|
Category/Sub-category of the Company |
Company Limited by Shares |
|
Address of the Registered office and contact details |
1st Floor, Office - 109, Nodh No.-1158 to 63/65/9, Hat Faliyu, Mahidharpura, Surat- 395003, Gujarat. Tel. No: +91- 261-2609960/3009960 |
|
Name, Address, and Contact Details of Registrar and Transfer Agent, if any |
K Fin Technologies Private Limited Selenium Tower B, Plot numbers 31 & 32 Nanakramguda, Financial District, Gachibowli Hyderabad – 500 032 |
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
|
Name and Description of main products/services |
NIC Code of the product/service |
% to total turnover of the Company |
|
Exchange Operation |
66110 |
100% |
BOARD OF DIRECTORS
Mr. Vijay Kumar Sharma (Chairman, Public Interest Director)
Mrs. Chitra Shringare (Public Interest Director)
Mr. Suresh Kumar Agarwal (Public Interest Director)
Mr. Sanjit Prasad (Managing Director & CEO)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
INDIAN COMMODITY EXCHANGE LIMITED does not have any subsidiary or associate company.
SHAREHOLDING PATTERN (As of 31-03-2020)
|
S. No. |
Shareholders’ Name |
Number of shares |
% of total Shares of the company |
|
1 |
Indiabulls Housing Finance Limited (Promoter) |
3,00,00,000 |
5.62% |
|
2 |
MMTC Limited (Promoter) |
3,20,00,000 |
6% |
|
3 |
Reliance Exchange next Limited (Promoter) |
8,71,00,000 |
16.33% |
|
4 |
Reliance Corporate Advisory Services Limited (Promoter) |
1,73,06,671 |
3.24% |
|
5 |
Central Warehousing Corporation |
5,89,63,956 |
11.05% |
|
6 |
Deputy Director (PMLA), Director of Enforcement, Ahmedabad |
4,82,09,060 |
9.04% |
|
7 |
Indian Potash Limited |
2,66,75,000 |
5.00% |
|
8 |
Other Public Shareholding |
23,32,52,789 |
44.65% |
|
|
Total |
53,35,07,476 |
100.00% |
INDUSTRY OUTLOOK
Until 2015, the commodity futures market was regulated by Forward Market Commission (FMC).In 2015, after the merger of FMC with the Securities and Exchange Board of India (SEBI), SEBI became the regulator of the commodity futures market. Commodity Exchanges play a vital role in promoting growth, transparency, and efficiency of the commodity futures markets. This role is defined by their functions, infrastructure capabilities, trading procedures, settlement, and risk management practices.
FY 2020 was steeped with uncertainties for India’s commodity markets. A slackened growth of the economy, the US-China trade war, weak currency due to frequent monetary easing and downgrades by multiple agencies, and a firm dollar as compared to the rupee and the aggravated US-Iran war-like conditions, are some of the factors which have led to the commodity markets lackluster performance.
In the last month of FY 2020, the COVID-19 pandemic developed rapidly into a global crisis, forcing governments to enforce lockdowns on all economic activity. Despite the lockdown, a protracted return to normalcy was seen by August 2020. The unprecedented scale and scope of policy responses will undoubtedly help to limit the extent of the collapse and will help the post-crisis recovery.
Recently, SEBI has taken various steps to boost the commodity derivative market. In a major decision to strengthen the commodity market, SEBI permitted mutual funds to participate in commodity futures along with PMS. It enabled mutual funds and portfolio managers to participate in the Agri and non-Agri commodity derivatives segments (CDS). Earlier, Alternative Investment Funds (AIFs) were allowed to trade in commodities futures. Notablepoliciesinitiatives have been allowing commodity options, allowing foreign entities to hedge their exposure on commodities in Indian commodity exchanges, and allowing the introduction of commodity indices trade.
Other than the response to the Covid-19 pandemic, major factors to impact Indian commodity markets in the coming year include a resurrection in consumption demand, growth led by policy reforms, a move towards digitization, and the monetary stance of central banks of major economies, and the economic and trade policies. Coupled with strong demographic dividends and economic growth, consumer demand conditions in the country will remain strong for a long period. Additionally, a stable fiscal situation, moderate inflation rate, exports growth, and rising FDI inflow point towards fundamental stability in the economy, which augurs well for the markets
