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’.
- 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.
- 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.
- 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.