Price Risk Management – A Boon for the Bullion Stakeholders

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Coimbatore (Tamil Nadu), October 19, 2015: A comprehensive programme targeted towards educating the bullion stakeholders about hedging price exposures and spread awareness about the myriad benefits offered by commodity futures market in India, Multi Commodity Exchange of India Ltd. (MCX) jointly organized a programme with three bullion associations, namely, Coimbatore Jewellers Association, Coimbatore Jewellery Manufacturing Association, and Coimbatore Bullion Association, in Coimbatore on Saturday, October 17, 2015.
Members present on the dias, Mr. B. Muthu Venkatram, President, Coimbatore Jewellery Manufacturers Association; Mr. Asokan, Secretary, Coimbatore Jewellery Manufacturers Association; Mr. K. Krishnamoorthy, President, Coimbatore Jewellers Association; Mr. B. Sabarinath, Secretary, Coimbatore Jewellers Association; Mr. N. Anantha Srinivasan, President, Coimbatore Bullion Association; Mr. A. Senthil Srinivasan, Secretary, Coimbatore Bullion Association; Mr. Ranganathan, Treasurer, Coimbatore Bullion’s Association, spoke elaborately, and expressed their views on the benefits and importance of commodity futures market in India.
During the programme, the experts from MCX explained the participants about how commodity exchanges have been playing an important and critical role in helping the participants of the commodity ecosystem, hedge their price risks and achieve their business objectives.
The market participants were also briefed about the importance of getting a copy of KYC, Member-Client Agreement and/ or other documents executed with the Member. Other topics discussed were Importance of margin, Payment mode, Contract Note, Ledger Statement and Exchange procedure on redressal of Investor Grievances and Arbitration Procedure.
While highlighting about the benefits of gold futures contracts offered by the Exchange, Mr. T.G. Senthilvelan, Assistant Vice President-Business Development, MCX said, “These contracts available in denominations varying from 1kg to as small as 1gm, are categorically designed keeping in mind the hedging requirements of the entire bullion value chain participants, effectively enabling them to deal with price fluctuation risks in bullion.”
“We are hopeful that the trading community and the participants in and around Coimbatore will make use of the Exchange platform to hedge their bullion price risks”, he added.
In a joint statement, presidents of all the associations said, “We are pleased to have organized this event in association with MCX. In recent years, with the globalisation of the Indian economy and sensitivity of prices of commodities to global factors, commodities have witnessed heightened price volatility. This has exposed all commodity stakeholders, including the bullion value chain participants to price shocks. This has definitely prompted a growing demand for hedging among commodity users.”

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