Readings: New commodity bourse, SEBI & P-Notes, Bullish on Agriculture
- Economic Times: Indiabulls, MMTC give shape to new commodity bourse
Indiabulls Financial Services (IBFSL) informed the Bombay Stock Exchange on Wednesday that it will set up a special purpose vehicle (SPV) with Metals and Minerals Trading Corporation (MMTC) for a commodity exchange.
MMTC is the country’s largest international trading house with annual trading turnover of $4 billion . . .
There are currently three national exchanges in the commodities space. The biggest, MCX primarily focused on metals and energy products, though it has introduced several new futures in recent times. The other leading exchange, NCDEX, is a strong platform for agri-commodities, but has suffered a fall in volumes due to the government ban on several agri-futures. The third bourse, NMCE, based in Ahmedabad, has reported very low volumes.
Sebi plans to announce its decision on curbing investments through PNs on 25 October.
There is no upper limit for such sub-accounts that want to get registered as FIIs.
. . . all 20 sub-accounts (FIIs agents) issuing Participatory Notes (PNs) have sought the status of foreign institutional investors within the 24 hour-deadline set by the watchdog on Monday.
- BCA Research: Agriculture: Structurally Bullish
Limited acreage growth and decreased water availability will constrain the supply-side response to higher agricultural commodity prices, both in the near and long term . . . arable land per capita in China and India is only 18% and 26% of U.S. levels, respectively.
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