NSE to enter agri-commodity trading with 8 new contracts: report
04 Apr 2019
The National Stock Exchange (NSE) plans to enter trading in agricultural commodities with eight new contracts that are not currently traded on any other exchanges, say reports.
NSE is reported to have sought permission from the Securities and Exchange Board of India (Sebi) for the proposed contracts in almonds, castor oil, soya degum, urad dal, tur dal and pulses.
Rival Bombay Stock Exchange (BSE), has already launched trading in agricultural commodities such as guar seed and guar gum and is reported to have already garnered more than 30 per cent market share in guar seed.
By launching new commodity contracts, NSE hopes to derive benefits of market incentive scheme introduced by Sebi for trading in commodities not traded on other exchanges..
NSE proposes to launch trading in several other commodities and is reported to be examining several agri-commodity products.
There in immense scope in agri-commodity trading as stock exchanges are yet to tap into the vast market, which is currently regulated by governments in most states.
Both BSE and NSE are trying to develop agri-commodity trading, as there is no transaction tax in this segment and may prove attractive for traders.