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With an aim to widen the base of market participants and explain about the price risk management tools, Multi Commodity Exchange of India Ltd (MCX), today organised an awareness programme along with Forward Markets Commission (FMC) and Ambad Industries and Manufacturers Association at Nashik. The programme was customised for the market participants in and around Nashik.
The experts during the programme imparted in-depth knowledge to the participants about the commodity markets and the importance of commodity exchanges in India. They explained about the technicalities of working of the commodity markets with respect to the products, price discovery, transparency and risk management mechanism in trading and settlement of transactions. Additionally, they highlighted the role of FMC in regulating and monitoring the functions of commodity exchanges in building confidence of the market participants, and for the growth of Commodities Market in India. They further elaborated on the topics such as the benefits of hedging, role of commodity futures exchanges, and the regulatory perspective. It was a platform to create a better understanding of the commodity futures market among the participants, thereby enabling them to hedge risks, in the face of volatile market conditions.
Mr. Chittaranjan Rege, Vice President-PKMT, MCX said, “We are delighted with the remarkable response to the awareness programme held at Nashik. MCX’s persistent efforts in organising programmes across India on commodity futures trading, has encouraged more and more participants from the varied industries and sectors to use the commodity futures market for price discovery and hedging their price risk exposures. The Exchange’s rupees denominated contracts provide risk management tools to the market participants who are unable to trade on international exchanges.”
The experts during the programme elaborated about the innovative bullion and base metal contracts offered by the Exchange, that enable the hedgers to effectively manage the impact of price fluctuations and control their risks efficiently.
Mr. Vivek Patil, President, Ambad Industries and Manufacturers Association said, “The speakers briefed the market participants about the futures contracts offered by the commodity derivative exchanges to hedge their exposures against rising or falling base metals and bullion prices. We thank FMC and MCX for organizing this insightful programme on Hedging. This initiative will go a long way in educating the market participants on the benefits of hedging, thereby giving them the sanguinity to hedge risks.”
