ICEX India Limited

ICEX India Limited :


Indian Commodity Exchange Limited (ICEX) is SEBI regulated online Commodity derivative Exchange, Headquarters in Mumbai. It provides a nationwide trading platform through its appointed brokers. It is the first Exchange worldwide to launch the Diamond Derivative contract.

Indian Commodity Exchange Unlisted Shares

About the Company

  • The Exchange launched the world’s first-ever Diamond derivative contracts. ICEX aims to provide futures trading products in India’s all economically relevant commodity. At present, it offers futures contract in Diamond. Providing desired price risk hedging solution to the trade through innovative contract designing forms the core value of ICEX.
  • The Exchange is ideally positioned to leverage the huge potential of the commodities market and encourage the participation of actual users to benefit from the opportunities of hedging, risk management and supply chain management in the commodities markets.
  • ICEX is the first Exchange in India to adopt a global hi-tech platform that ensures automatic and seamless switch-over from its Data Center (DC) to the Disaster Recovery (DR) site with zero data loss in case of exigencies. The technology platform has highly optimized processing techniques, which enables the system to handle very large orders with latencies under 300 microseconds.
  • The exchange has now 16 different commodity derivatives contracts available for trading on its platform.
  • Indian Commodity Exchange Limited (ICEX) is SEBI regulated online Commodity Derivative Exchange.
  • The Exchange was incorporated on 18th August 2008.
  • Headquartered in Mumbai, the Exchange provide a nationwide trading platform through its appointed brokers.

Industry Overview- Opportunities

  • The Indian stock exchanges are crucial market infrastructure intermediaries and are supervised by the Securities and Exchange Board of India (SEBI). It is a tool for nation-building and a major job creator.
  • The Exchange space spans many asset classes – equities, equity derivatives, currency derivatives, corporate and government bonds, interest rate derivatives, and commodity derivatives, etc.
  • Interoperability norms benefit market participants to rationalize margins across exchanges and products by optimizing the use of capital but also reduce post-trade costs of trading firms.
  • With a favourable regulatory environment, Indian capital markets are expected to remain attractive to both domestic and foreign investors.
  • Initiatives by the government towards ease of doing business, enhanced sectoral caps, a simpler mechanism to obtain approval for investment coupled with tax exemptions is expected to further boost the robust business environment for foreign investors. This will augment the depth, maturity and robustness of the Indian capital markets & build investor confidence.

Products & Services

  • Non-Agri Products
    • Diamond
    • Steel
  • Agri Products
    • Spices
    • Cereals
    • Plantation
    • Oil & Seeds Fiber Others
  • Mutual Funds

History & Evolution

  • The Indian Commodity Exchange (ICEX) is the third-largest commodities exchange in India. It was merged with the National Multi-Commodity Exchange (NMCE) in 2017.
  • ICEX was the fourth exchange commodities exchange to open in India, launching in 2009 but it closed in 2014.
  • NMCE and ICEX agreed to merge in July 2017 and were to close the deal by December 2017.
  • The merger was forged in part by an Indian regulatory requirement that the exchange meets an INR 100-core ($15.2 million) minimum net worth for commodity exchanges. At the time of the merger, the NMCE's net worth was INR 76 core, while ICEX's net worth was INR 100 crore.
  • ICEX was given regulatory approval in July 2017 to restart its operations.

Rationale

  • As per SEBI requirement and in compliance with the erstwhile SECC Regulations, 2012, the Exchange has outsourced its services with respect to a clearing, settlement, deliveries, risk management services to Metropolitan Clearing Corporation of India Limited.
  • The Exchange with the support of its well-experienced management team has successfully set up its infrastructure and technology. ICEX has tied up with leading technology provider Millennium IT, a subsidiary of the London Stock Exchange Group whose systems are used by exchange businesses around the world.
  • The Exchange is ideally positioned to leverage the huge potential of the commodities market and encourage the participation of farmers, traders, and actual users to benefit from price discovery, risk management, and supply chain management in the commodity markets.
  • The operating income for F.Y 2019-20 is ₹ 3.23 Crore as against ₹ 1.90 Crore in F.Y 2018-19.
  • The net worth as of March 31, 2020, stood at ₹129.37 crores.
  • ICEX Company had envisioned and has started a business in Mutual Fund Distribution Scheme and its related activities during the financial year 2019-20.
  • The average daily turnover during F.Y 19-20 was ₹ 156.41 crores as compared to ₹ 93.62 crores in F.Y 2018-19 (single side) with a total of 7098 clients traded on the Exchange.
  • ICEX has a national reach with 138 SEBI registered members, having 1298 Authorised Persons, operating through 3340 terminals including Computer to Computer Link (CTCL) across 329 cities/towns across India as of March 31, 2020.

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