NCDEX organizes a workshop jointly with IFMR & PJ Commodity

NCDEX, India’s leading commodity bourse, organized a workshop jointly with Institute for Financial Management and Research (IFMR) and PJ Commodity Ventures at the IFMR campus here today. The workshop focused on the concept of “hedging” and how market participants could protect their bottom line through this mechanism.

Rising commodity prices across the globe have resulted in a steep rise in raw material costs to users and processors of raw materials, thereby impacting them with unanticipated loss of income. This has had a major impact on corporate earnings worldwide.

The workshop aimed at creating a better understanding of the futures market. How the market participants could use the Exchange platform to manage price risk to which they would be exposed to and volatility associated with commodity prices were some of the important aspects elucidated at the workshop.

Speaking on the occasion, Mr. R Ramaseshan, MD & CEO, NCDEX said, “The objective of this initiative was to spread awareness about the concept of hedging. It is important for market participants to have an understanding about three things i.e. functions of the Exchange, role of members of Exchanges and more importantly how to manage price risk by trading on Exchanges through their members”.

Mr Rajivan, President, IFMR said, "The IFMR-NCDEX tie up will go a long way to educate people on the futures market.  IFMR being a well known research body would help NCDEX in creating awareness of hedging amongst market participants.”

Mr Shreekanth Jha, MD, PJ Commodity Ventures said, "Success in hedging and managing risk can only be determined after it has been tried. It looks like the industry is moving in the right direction by understanding these concepts."

The turnout at the workshop was excellent and the content was well received by all attendees. A few of the representatives of corporates requested commodity specific intensive hedge workshops, an initiative which would be looked into in the near future.

Sourced From: NCDEX