Outsiders can do such transactions only through matters acting as brokers. Cash contracts can be further classified into two categories: If there is any dispute, it is settled by arbitration and for that there is a special sub-committee in the exchange.
The characteristics of a commodity exchange are: Banks make advances against stock of raw materials, finished products, etc.
They have also international significance. The commodity markets, therefore, have the characteristics of organised markets. The members have to settle their contracts within the trading months and not according to their choice.
There are rules and regulations for membership depending on the constitution of the association. The percentage is fixed by the authorities of the exchange.
There are wholesale as well as terminal markets for all kinds of commodities but they are not exactly commodity markets because future transactions do not take place in all such markets.
The commodity exchanges render many useful functions to the business community as a whole and specially to the dealers in the specific commodities.
Functions of Commodity Market: These contracts are of speculative nature. In India there is commodity market for only one kind of manufactured goods, i. According to the nature, of their objects: Classification of Commodity Market: In every market there are rules fear transactions as well as rules for membership.
Commodity markets may be profit-sharing or non-profit sharing among their members. Commodity markets can be further classified into: Thus it is to be observed that there is a great difference between forward contracts and futures contracts.
Services Rendered by Commodity Market: The cash contracts are, therefore, also known as ready delivery contracts. Once the parties agree to such contract they cannot fall back, b Forward contracts: This is determined according to the condition of supply of the commodity in the market.
A commodity market provides a definite place where the traders can do their transactions under some standard rules and regulations.
In some commodity markets only cash contracts are executed but generally commodity markets are future markets.
In such markets agricultural commodities like jute, cotton, wheat, tea, oilseeds etc. In the farmer group come jute, cotton, metals etc. Commodity markets dealing in agricultural products are also known as produces exchanges.
The agreement is made in the spot market but the parties fix up an agreed date when actual execution of the contract will take place. There are organised markets for manufactured or semi-manufactured goods also like cotton goods, jute goods, wool, hides and skins, sugar etc.Commodity Market In India Essays: OverCommodity Market In India Essays, Commodity Market In India Term Papers, Commodity Market In India Research Paper, Book Reports.
ESSAYS, term and research papers available for UNLIMITED access. Commodity market is an important constituent of the financial markets of any country. It is the market where a wide range of products, viz., precious metals, base metals, crude oil, energy and soft commodities like palm oil, coffee etc.
are traded. It is important to develop a vibrant, active and liquid commodity market. "Objectives Of Commodity Market In India" Essays and Research Papers.
Objectives Of Commodity Market In India. Study on Commodity Market - September 8th, A study on Market Research Report: India Hearing Impairment Market.
Essays, Research Papers and Articles on Business Management Huge Collection of Essays, Some of them are of international character, e.g. tea market in India. Commodity markets dealing in agricultural products are also known as produces exchanges.
ADVERTISEMENTS: (b). COMMODITY FUTURES MARKETS IN INDIA: ITS IMPACT ON PRODUCTION AND PRICES II COMMODITY DERIVATIVES MARKET IN INDIA After the Indian economy embarked upon the process of liberalisation and.
To study the evolution and growth of commodity market in India. 2. To study the price volatility, efficiency and arbitrage opportunity related to Research Methods Since this paper focuses on the conceptual perspective of commodity future trading and its implication on the commodity market, secondary data has been done for future trading in.Download