NCDEX ties up with NSE Indices to launch AGRIDEX

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News:The National Commodity and Derivatives Exchange(NCDEX) has tied up with National Stock Exchange(NSE) to launch India’s first agri index ‘NCDEX Agridex’.

Facts:

About Agridex:

  • The index represents a basket of ten commodities that are selected based on both liquidity and its importance in Indian and global commodities market.
  • The index will be made tradable after being approved from the Securities and Exchange Board of India(SEBI).
  • The index has tied up with NSE Indices which will maintain and disseminate real time NCDEX Agridex values.

Significance of Agridex:

  • As index represents a diverse basket of commodities,it is less risky and more predictable compared to individual commodity.
  • Futures trading on Agridex will also enhance overall liquidity on the exchange platform.

Additional information:

About NSE:

  • The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,located in Mumbai.
  • The NSE was established in 1992 as the first demutualized electronic exchange in the country.

About NCDEX:

  • National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity exchange based in India.
  • It is a public limited company incorporated in 2003 under the Companies Act,1956.
  • It has an independent board of directors and provides a commodity exchange platform for market participants to trade in commodity derivatives.