Indian Commodity Exchange (ICEX)

Indian Commodity Exchange ICEX

Indian Commodity Exchange Limited or ICEX is a SEBI regulated online Commodity Derivative Exchange, headquartered at Mumbai. 

ICEX provides a nationwide trading platform through its appointed brokers for commodity trading in India. 

ICEX launched the world’s first-ever Diamond derivatives contract of 1 carat in August 2018.

Overview of Indian Commodity Exchange Limited

The Indian Commodity Exchange Limited (ICEX) started its operation in August 2017. After a year, on August 28 2018, the exchange launched its steel long contract.

In 2018-2019, the National Company Law Tribunal (NCLT) sanctioned the amalgamation of the NMCE with ICEX. (National Multi Commodity Exchange of India Limited with Indian Commodity Exchange Limited)

On 11th July 2019, ICEX launched ‘Paddy Basmati’ Derivatives Contract.

ICEX helps farmers in key aspects like price discovery, risk management. Also,  allows them to trade in derivative contracts which are not available in MCX.

Commodity Products Baskets for ICEX 

ICEX offers commodity trading in the following commodities:

1. Agro Products:

Spices
  1. Black Pepper 
  2. Cardamom 
Oil and Seed
  1. Castor Oil
  2. Khopra
  3. Mustard Seed
  4. Soyabean Oil
Planation
  1. Rubber
Fibre
  1. Raw jute 
  2. Jute Sack
Others 1. Guar Seed

2. Isabgol Seed

2. Non-Agro Products

Metals
  1. Diamond 
  2. Steel

ICEX Market Timings – Trading Sessions

The ICEX is open 5 days a week i.e. from Monday to Friday with different timing for agro and non-agro commodities.  

Agro Commodities 9:00 am – 5:00 pm
Non-Agro Commodities 9:00 am -11:30 pm/ 11:55pm

ICEX Management Details

Promoters And Management:

Dr H. K. Pradhan Chairman, Public Interest Director
Mr Ajit Kumar Mittal Shareholder Director
Mrs D. Vijayalakshmi Public Interest Director
Mr J. J. Bhatt Public Interest Director
Mr Lav Chaturvedi  Shareholder Director
Mr Sanjit Prasad Managing Director & CEO

ICEX’s Business

The Company’s main source of Revenue comes from the following Services:

  1. Membership admission fee
  2. Transaction Fee
  3. Other membership fees
  4. Connectivity charges
  5. Income from penalty charges.
  6. Vaulting Charges.

Membership of Indian Commodity Exchange Limited (ICEX)

Members of Indian Commodity Exchange Limited (ICEX) plays an essential role between the ICEX and the users. The transactions in the ICEX platform are executed between the registered members.

As the members of the exchange maintain the confidence in the exchange, the application for membership is evaluated by the following rules.

Who can become a member of Indian Commodity Exchange Limited (ICEX)?

  • Registered partnership firm
  • Hindu Undivided Family or HUFs
  • Proprietorship firm
  • Private limited company
  • Cooperative societies.

According to market participants, Indian Commodity Exchange Limited (ICEX) has different categories of membership.

  • Trading Membership
  • Trading and clearing membership 
  • Professional clearing membership
  • Institutional trading and clearing membership

Indian Commodity Exchange Limited (ICEX) Membership process

  • Submission of the application form.
  • Evaluation of the documents submitted.
  • Interview 
  • Allotment of the membership code.
  • The application goes under processing
  • Issue of certificate 

Shareholding Pattern as on 30th September 2020:

Name of the shareholder Number of shares held at the end of the quarter Percentage of shareholding  
1. Reliance Exchangenext Limited 8,71,00,000 16.33%
2. Central Warehousing Corporation  5,89,63,956 11.05%
3. Deputy Director (PMLA) Directorate of Enforcement  4,82,09,060 9.04%
4.  MMTC Limited  3,20,00,000 6.00%
5. Indiabulls Housing Finance Limited 3,00,00,000 5.62%
6. Indian Potash Limited  2,66,75,000 5.00%
7. Bajaj Holdings And Investment Ltd 2,54,40,800 4.77%
8. Reliance Corporate Advisory Services Limited 1,73,06,671 3.24%
9. Asian Star Company Limited  1,67,50,000 3.14%
10. Akhil Kumar Gupta 1,67,50,000 3.14%
11. Vijay Sharma 1,67,50,000 3.14%

Key Takeaways: 

    • ICEX is a commodities exchange in India and was launched on 28th August 2017.
    • ICEX launched the world’s first-ever Diamond derivatives contract of 1 carat. 
    • ICEX launched its steel long futures contract on August 28, 2018.
    • The amalgamation of NMCE and ICEX took place on September 24, 2018
    • The company has also obtained approval from SEBI to facilitate transactions in the Mutual Fund scheme on the platform.
    • ICEX is the first Exchange in India to adopt a global hi-tech platform, which ensures automatic and seamless switch-over. Also, it prevents data loss from its Data Center (DC) to the Disaster Recovery (DR) site.
    • The technology platform can handle large orders in 300 microseconds.

Concluding thoughts

There was an amalgamation of Indian Commodity Exchange Limited (ICEX) and National Multi Commodity Exchange of India Ltd. (NMCE). 

This was the first acquisition deal in the commodity exchange of India. It had a 62.8% stake of ICEX and 37.2% Stake of NMCE.

The amalgamation has resulted in the financial strength of ICEX. It has also resulted in strengthening the position of the exchange in the country.

ICEX also facilitates trading in commodity contracts which aren’t available on NMCE or other commodity exchanges. Thus it provides farmers and traders with a complete commodity trading experience.

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