Biggest Commodity Exchange of India?
Which is the biggest Commodity Exchange of India?
India have around 24 Commodity Exchanges. But major of these are National Commodity and Derivative Exchange, National Multi Commodity Exchange of India Ltd and Multi Commodity Exchange of India Ltd.
Multi Commodity Exchange of India Ltd (MCX) is the biggest Commodity Exchange of India. The Exchange is established in Mumbai. MCX started operations from 2003.
MCX is Biggest commodity exchange in India with around 80% market share.
Can you throw some light on the recent fraud happened in one of the Commodity Exchange. What was the scam of National Spot Exchange Limited?
National Spot Exchange Limited (NSEL) is a commodity exchange. NSEL was promoted by Financial Technology India Limited.
The scam was of 5600 crore rupees (Approx $1billion). NSEL did fraud by allowing trades on commodities which were not in lien of exchange and these trades were on papers only.
The most of underlying commodities never existed and buying and selling of commodities was being conducted only on paper.
The effects of this scam were:
Promoter of Financial technologies of India Limited, Jignesh Shah will not be able to run any exchange in India.
Jignesh Shah and Joseph Massey on 9/10/13 had to resign from the board of MCX-SX stock Exchange.
Jignesh Shah resigned from MCX on 31/10/13
This is one of the biggest scam done by an Exchange. The Shares of promoter company FTIL and also the shares of sister company MCX saw a big fall.
The documents and role of managment team is being inspected and full order by courts is awaited.