National Commodity & Derivatives Exchange Ltd (NCDEX) on 25 July 2014 announced introducing a comprehensive hedge policy for the commodity markets.
Objectives of the Policy
The NCDEX explained that the policy has been designed with the objective of making risk management easier, simpler and accessible for commodity businesses.
Benefits of the new Policy
The policy has widened the eligibility criteria for bonafide hedgers and has simplified processes and documentation for availing hedge limits on the Exchange platform. With expanded eligibility criteria, the documentation has also been further simplified.
About the Policy
The policy also special additions like hedging for related products of commodity, same commodity but different contracts, cross hedging in upstream, downstream commodity and related commodity having a very high correlation arising out of the similar degree of effect.
About the National Commodity & Derivatives Exchange Ltd
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When: 25 July 2014