gartala: In a bid to better explain and educate the market participants and executives in Agartala about the dynamics of commodity futures market in India, Multi Commodity Exchange of India Ltd. (MCX) organized awareness programmes in the city last week. The programmes were organized in association with Tripura Chamber of Commerce & Industry, and Institute of Cost Accountants of India (Agartala Chapter) respectively.
During the programmes, the participants were made to understand about the fundamentals and aspects of commodity futures in India. They were explained about the role played by commodity futures exchanges such as MCX in facilitating price risk management and price discovery, while also covering the entire array of policy, products, and procedures. Later, there were brief sessions on clearing and settlement procedures, and risk management, which are indubitably the most important and critical attributes for successful functioning of commodity exchanges.
Mr. M. L Debnath, President, Tripura Chamber of Commerce & Industry said, “Price risk management using commodity futures contracts is an effective way of protecting ones margins. However, until recently not many people were aware of it, and it was not being utilized to their benefits. Hence, it becomes important to educate the market participants about the mechanics of futures trading in commodities in order to gain detailed knowledge about the risk management tools offered by commodity exchanges such as MCX.
Mr. S. N. Banerjee, Chairman, ICAI (Agartala Chapter) said, “The hallmark of commodity exchanges such as MCX lies in the level of efficiency of market mechanism, the maturity and the globally-competitive edge that they have managed to build into them in a short span of time, because of which the Indian commodity futures market has scaled the heights of global reckoning.”
Mr. Vibhor Tandon, Assistant Vice President-Business Development, MCX said “These awareness programmes, conceived and designed by MCX are an attempt to create young professionals by empowering the youth of North-Eastern India with basic understanding of commodities at the grass root level and spread awareness to aid development in the region, and surrounding areas.”