In a significant move, the National Commodity and Derivatives Exchange (NCDEX) would launch the nation’s first agri-futures index – NCDEX AGRIDEX – on 26th May.
According to NCDEX, the agri-futures index is a return-based comprehensive index with commodity wise and sector-wise floors and caps, and no single sector or commodity will dominate the index.
The exchange has started the mock trading in agri-index futures contracts, which will go live on May 26, as per the latest reports.
Initially, the exchange will offer futures contracts that would expire in the months of June, July, September and December, the exchange said.
“The introduction of AGRIDEX Futures is another important step in the same direction. AGRIDEX Futures contracts will provide investors with one more tool for trading and risk management at a composite level,” NCDEX MD and CEO Vijay Kumar said.
“Since AGRIDEX futures contracts provide a diversified cash-settled instrument, it will help in widening participation on the exchange from both institutional and retail investors,” NCDEX Business Head Kapil Dev said.
It is to be noted here that in order to disseminate real-time NCDEX AGRIDEX values, the leading agri-commodity bourse has partnered with NSE Indices.