Vol. 2, Issue 11 (2015)
Commodity Market in India
Author(s): S Poornima, Deepthy K
Abstract: Commodity market is an important part of financial market in a country. Commodity market is an alternative investment avenue to those who want to invest beyond shares, bonds, real estate etc. India being a country in which agriculture occupies a vital position in overall economy, fluctuation in prices during the harvesting period has always been a major concern for the farming community. Commodity future trading has emerged as a viable option to hedge the risk of price volatility. Now with the merger of two regulators Securities Exchanges Board of India (SEBI) and Future Market Corporation (FMC) the market is expected to grow further with the increase in the confidence of investors. The merger is aimed at streamlining the regulations and curb wild speculations in commodity market, while facilitating future growth. This paper attempts to throw light on commodity market in India and to find out the impact of the SEBI-FMC merger and also to analyze future growth prospects and challenges of commodity market.