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The first organized futures market was however established in 1875 under the
aegis of the Bombay Cotton Trade Association to trade in cotton contracts.
Derivatives trading were then spread to oilseeds, jute and food grains. The
derivatives trading in India however did not have uninterrupted legal approval. By
the Second World War, i.e., between the 1920’s &1940’s, futures trading in
organized form had commenced in a number of commodities such as – cotton,
groundnut, groundnut oil, raw jute, jute goods, castor seed, wheat, rice, sugar,
precious metals like gold and silver. During the Second World War futures
trading was prohibited under Defense of India Rules.
After independence, the subject of futures trading was placed in the Union list,
and Forward Contracts (Regulation) Act, 1952 was enacted. Futures trading in
commodities particularly, cotton, oilseeds and bullion, was at its peak during this
period. However following the scarcity in various commodities, futures trading in
most commodities were prohibited in mid-sixties. There was a time when trading
was permitted only two minor commodities, viz., pepper and turmeric.
Deregulation and liberalization following the forex crisis in early 1990s, also
triggered policy changes leading to re-introduction of futures trading in
commodities in India. The growing realization of imminent globalization under the
WTO regime and non-sustainability of the Government support to commodity
sector led the Government to explore the alternative of market-based
mechanism, viz., futures markets, to protect the commodity sector from price-
volatility. In April, 1999 the Government took a landmark decision to remove all
the commodities from the restrictive list. Food-grains, pulses and bullion were not
exceptions.
The long spell of prohibition had stunted growth and modernization of the
surviving traditional commodity exchanges. Therefore, along with liberalization of
commodity futures, the Government initiated steps to cajole and incentives the
existing Exchanges to modernize their systems and structures. Faced with the
grudging reluctance to modernize and slow pace of introduction of fair and
transparent structures by the existing Exchanges, Government allowed setting up
of new modern, demutualised Nation-wide Multi-commodity Exchanges with
investment support by public and private institutions. National Multi Commodity
Exchange of India Ltd. (NMCE) was the first such exchange to be granted
permanent recognition by the Government
Vision & Mission
Our Vision
Our Mission
Leaders
Mr. Kailash Ramkishen Gupta is the founder and Managing Director of NMCE,
National Multi Commodity Exchange of India Ltd, the country’s first online multi
commodity trading exchange. Mr. Gupta brings more than 30 years of industry
experience and has the unique distinction of pioneering many revolutionary
concepts.
Firstly, Mr. Gupta pioneered the concept of online commodities trading in India
and founded NMCE in 2002. He was instrumental in not only convincing Govt. of
India in bringing reforms and policy changes to allow establishment of national
commodity exchanges but also introducing international best practices and
transparent online trading platform. He has been the driving force of NMCE.
Promoters
Strategic Investors
Reliance Money Limited – RML, an Anil Dhirubhai Ambani group company has
recently taken an equity stake in the exchange. It is a comprehensive financial
services and solution provider providing customers with access to Equity, Equity
and Commodity Derivatives, Portfolio Management Services, Mutual Funds,
IPOs, Life and General Insurance and Gold Coins. Customers can also avail
Loans, Credit Card, Money Transfer and Money Changing services. The largest
broking house in India with over 2.5 million customers and a wide network of over
10,000 outlets and 20,000 touch points in 5,000+ locations.