Axis Securities has launched commodity broking services through its membership with the Multi Commodity Exchange (MCX). It becomes the first bank subsidiary of bank to enter the commodity broking business. The move to allow bank-led brokers to offer commodity derivatives will not only expand the market volumes significantly but will also increase retail customer participation.
The trading was introduced under its flagship brand, Axis Direct, and all its existing and new customers will now be able to trade in 29 commodity futures and five options contracts, covering bullion, industrial metals, energy and agricultural segments.
The Reserve Bank of India (RBI) last September had allowed banks to offer broking services to clients on the Securities and Exchange Board of India (SEBI) registered commodity exchanges like MCX and National Commodity & Derivatives Exchange (NCDEX).