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NCDEX introduces hedge policy for commodity markets

28 Jul 2014 Evaluate

National Commodity & Derivatives Exchange (NCDEX) has unveiled a comprehensive hedge policy for the commodity markets. The policy has been designed with the objective of making risk management easier, simpler and accessible for commodity businesses.

It has also widened the eligibility criteria for bonafide hedgers and has simplified processes and documentation for availing hedge limits on the Exchange platform.

The policy also includes special additions like hedging for related products of commodity, same commodity but different contracts, cross hedging in upstream, downstream commodity and related commodity having a very high correlation arising out of the similar degree of effect.