IMC & MCX Signs MoU to Deepen and Widen the Commodity Derivatives Market


by Shrutee K/DNS

IMC Chamber of Commerce and Industry (IMC) signed today a Memorandum of Understanding (MoU) with Multi-Commodity Exchange of India (MCX) - the country’s No. 1 commodity derivatives exchange and among the world’s largest - with a view to work together to promote the commodity derivatives market covering energy products, metals and agricultural goods. 

India’s economic growth in the coming decades will be substantially commodity driven; and given the volatile nature of the commodity markets, price risk management or hedging assumes added significance.

IMC and MCX would undertake several promotional and developmental activities to deepen and widen the market. These would include awareness and training programs, conferences and seminar, knowledge building and research initiatives, policy advocacy and so on. There is synergy in the relationship given IMC’s large membership base and unparalleled access to over 200,000 business establishments and MCX’s leading position in the commodity derivatives market.  

On signing of the MoU, IMC President Dr. Lalit Kanodia said, “IMC has the requisite intellectual capital and domain expertise to help take the relationship forward. As a matter of fact, IMC is already a SEBI accredited Training Institution. The IMC – MCX relationship will be a winning combination, not just for the two institutions but for the commodities market at large”.

Speaking on the occasion, Mr. Mrugank Paranjape, MD and CEO, MCX said, “We are pleased to be associated with one of most renowned and reputable industry bodies in India which would enable us to synergize our efforts on commodity derivatives market development. With this MoU, we hope to leverage IMC’s wide network of small and medium enterprises and a vast membership base to reach out to the commodity stakeholders across the country, and empower them to get access to an efficient and cost-effective hedging platform to manage their price exposure. Thus, this collaborative endeavour would be a big move in the growth and development of businesses of all scale that contribute significantly to the country’s GDP and employment.”

About IMC:IMC is a 111 year old premier Chamber of trade, commerce and industry in India. Headquartered in Mumbai and with a strong presence in Delhi, the Chamber has about 3000 members comprising a cross section of the business community. With a large membership base including 220 trade and industry associations, IMC is able to reach over 200,000 business establishments. Nearly 700 members (agribusiness, textiles, steel and metals, construction, FMCG etc) have exposure to commodities. Around 50 trade associations are commodity based; and 10 are meant for financial services. IMC undertakes advocacy on a wide range of matters and provides impetus to growth and development of businesses, on policy and implementation matters. It represents the interests of a variety of sectors like banking and financial services, agribusiness, environment, energy, tourism, information technology, education, construction, etc. IMC organizes interactive meetings with ministers, senior bureaucrats, thought leaders, industry captains and others to express and drive home its views.

About MCX:Having commenced operations on November 10, 2003, Multi Commodity Exchange of India Limited (MCX) is India’s first listed, national-level, electronic, commodity derivatives exchange. It is also the first exchange to introduce commodity options in India. In the financial year 2017–18, the market share of MCX was 89.58%. MCX offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem. Various commodities across segments are traded on the Exchange platform. These include bullion, energy, metals and agri commodities. The exchange has forged strategic alliances with various international exchanges, as well as Indian and international trade associations. For more information about MCX and its products visit www.mcxindia.com.

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