A Study On Performance of Multi Commodity Exchange of India Limited

Abstract

The commodity derivative market is believed to exist in India for over 100 years. Over two decades, commodity futures have become a popular class for portfolio investors. At present, about five National Commodity Exchange are contributing towards the development of the market under the valve of the Securities and Exchange Board of India (SEBI). The commodity market in India facilitates these exchanges domestically and globally based on the requirements for the development of the economy. The leading Multi commodity exchange of India currently holds a market share of 92.6% as of September 2021-22, with 1,19,941 crores of daily turnover since inception and ranked as 7th position with 33% YOY change in commodity options and futures contracts traded in 2019 as recorded in World Federation of Exchanges. MCX is currently working towards the requirement of different market participants by providing innovative products and services. This research paper is an attempt to understand the development and performance of Multi commodity exchange since its inception.