Mr. S K Mohanty, Executive Director, SEBI called upon big corporate houses to hedge on domestic exchanges in light of the upcoming institutional participation instead of participating in overseas exchanges. Mr. Mohanty was speaking at FICCI’s Conference on Institutional Participation in Commodity Derivatives Market organised here today.
Mr. S. K. Mohanty, further said that Indian commodity derivatives are at an important phase, where they are looking to liberate themselves from various limitations present earlier.He added that SEBI is in the process of introducing institutional participants in the commodity derivatives markets in a steady, gradual and calibrated manner, as recommended by various committees, which will lead to the development of a vibrant, robust commodity market in India. He urged various large corporates to hedge their commodity exposure in domestic markets.
Mr. Mrugank Paranjape, Managing Director of Multi Commodity Exchange of India (MCX) while delivering the theme address, spoke on the immense benefits institutional participation shall bring to the markets like enhanced reach, improvement of depth, liquidity and enhancement of the efficiency of price discovery.
Mr. Pradeep Menon, Managing Director, Global Head of Investment and Advisory, Thomson Reuters said that the changes in the regulatory landscape for commodity derivatives markets in India is a big business opportunity.
Speaking on the launch of co-branded indices with MCX, he said that indices bring fairness,transparency and trust to the market, that will allow funds to track the market and launch products based on these benchmarks.
The conference saw the launch of Thomson Reuters – MCX India Commodity Indices (iCOMDEX) that tracks the performance of commodities listed on MCX, which will be useful to institutional participants for benchmarking performance and to also build products.