What are the Challenges Faced by FPOs in Existing Forward Trades and how Exchange traded forwards by NCDEX gives a perfect effective solution.

1. EXCHANGE TRADED FORWARDS
FPOs

2. Challenges Faced by FPOs in Existing Forward Trades
2
Inability
to get
fair price
Lack of
assurance of
payment
Inability to
capitalize on
better quality
of produce
Limited
market
Storage and
delivery
hassles

3. Credit Risk
3
Limited
Counterparties/
Buyers/
market
Delayed
payment
Lack of
funds
Inability to
gauge/manage
counterparty
default risk
Assured and timely payment
Compensation in case of default
Effective
Solution

4. Limited market
Restricted business opportunities
4
Seeking
buyers willing
to pay
premium
Limited reach
Increased
operational
hassles and
costs
Enhance
efforts for
quality
certification
Wider market
and fair prices
Effective
Solution

5. Quality inconsistency
Sub-optimal prices
5
Access to pan-India
buyers and better prices
Initiate unique
and innovative
ways to expand
business
Increased
marketing and
operational
costs
Effective
Solution

6. Quality inconsistency
Sub-optimal prices
6
Flexibility in
delivery,
multiple options
of delivery
Access to
scientific
storage
services
Pledge finance,
seamless
integration with
institutional
financing
Utilizing services
of intermediaries
Increased
operational
hassles and cost
Effective
Solution

7. Exchange Traded Forwards –
ONE STOP SOLUTION to accelerate efficiency and growth
7
Trading on
regulated
platform
Compensation
guarantee to
the extent of
margin
collected
Online
Trading –
Access to
pan-India
market
Option of
Assaying –
Assured
quality
Time-bound
delivery-
settlement
schedule
Multiple
delivery
modes,
flexibility in
delivery
Takes care
of operational
difficulty
Takes care
of timely
settlement/
payment
Takes care
of Fair Price
For higher quality
Takes care
of access to
Wider market
Takes care
of default
compensation
Takes care
of counterparty
risk

8. Thank You
For information on Exchange Traded Forwards Contact at
Toll free no.: 1800 210 2339
E-mail: askus@ncdex.com
website: www.ncdex.com