The document provides an overview of the history and development of commodity markets in India. It discusses how commodity exchanges originated in Chicago in the 1840s and later spread to other parts of the developing world in the 1980s-1990s. It then focuses on the evolution of commodity markets in India, from over 20 regional exchanges prior to a ban in the 1960s to the emergence of national electronic exchanges today. The document also summarizes current trading volumes and provides examples of trading processes for futures, spot, and delivery-based commodities.

1. Trade In Commodity Derivatives With Inventure Commodities Ltd.,

2. Introduction of Commodity Market in India

3. The History of Commodity ExchangesThe world's oldest established futures exchange, the Chicago Board of Trade, was founded in 1848 by 82 Chicago merchants. The first "to arrive" contracts were flour timothy hay "Forward "arrive flour, seed and hay. Forward contracts on corn were introduced in 1851.The Chicago Mercantile Exchange, was founded as the Chicago Butter and Egg Board in 1898. Most of the exchanges in the developing World were established in the 1980s and 1990s in response to government liberalization of commodity markets. In the 21st century, online commodity trading has become increasingly popular, and commodity brokers offer front-end interfaces to trade these electronic-based markets.

4. largest commodity exchange in the worldSource: As per the data compiled from the respective exchange website

5. Indian Commodity MarketsCommodity Markets have their presence in country for over 120 yrs.

6. Trade in commodities has been Unorganized in Regional markets & Local Mandis.

7. Trading in Futures Contracts has been permitted in over 120 commodities.

8. Physical commodity market size in India is estimated to be around 25 lakhcrore per annum.

9. Major commodities traded in India are - Gold, Silver, Crude Oil, Copper, Guar, Chana, Spices, among the few.6Evolution of Commodity markets in IndiaBan in forward trading from mid-sixties Prior to banThriving commodity exchanges for cotton, gold, edible oils etc.more than 20 regional commodity specific exchangesRecent developmentsBan completely lifted in 2003Emergence of national level de-mutualised online multi-commodity exchanges3 National and 21 regional exchangesTrade in 60 commodities compared with just 8 in 2000Growth exceeds 7-8 times in FY09 over FY10

10. Details…

11. Regional Exchanges

12. Futures & Spot Market in IndiaFuturesMCX (Multi Commodity Exchange)

13. NCDEX (National Commodity & Derivative Exchange) &

14. NMCE (National Multi-commodity Exchange)

15. ICEX ( Indian Commodity Exchange)Spot NSEL(SPOT)NCDEX Spot Exchange Ltd. (NSPOT)

16. Business in Indian Exchanges

17. Volume Month wise MCX/NCDEXConversion: Rs. 10 Lakhs = Rs. 1 Million

18. F&O V/s MCX/NCDEX Daily Volume

19. Market growth of 275% over FY08 volumes;55% growth over FY09.Unlike developed markets, participation in Indian market is more retail & individual and not institutional13

20. Performance of MarketSource: As per the data compiled from the MCX exchange website

21. CurrencyIntroduce on October 7, 2008 by launching monthly contracts in the USDINR currency pair under the regulatory framework of Securities and Exchange Board of India (SEBI), and Reserve Bank of India (RBI). Consequently, the stock exchange expanded its currency derivatives offerings to Euro-Indian Rupee (EURINR), Pound Sterling-Indian Rupee (GBPINR) and Japanese Yen-Indian Rupee (JPYINR). Each of these currency contracts on MCX-SX has a life of 12 months from the month in which it is launched.Currency Trading available in…USD – INREuro-INRPound Sterling-INRJapanese Yen-INR

22. Total Value (in Crores)

23. Commodity Futures TradingIndia had long tradition; market now being revived; paradigm shift in thinking,

24. Huge appetite for speculation; equity players expand into commodities; more liquidity. New Developments Banks, MFs, FIIs may be allowed to trade commodities; huge fund flow expected; volatility will create market opportunities for investors;

25. Gold ETF has all ready launchedA gold exchange-traded fund (or GETF) is an exchange-traded fund (ETF) that aims to track the price of gold. Gold exchange-traded funds are traded on the major stock exchanges including Zurich, Mumbai, London, Paris and New York. As of October 2009, gold ETFs held 1,750 tonnes of gold in total for private and institutional investors.[1] There are also closed-end funds (CEFs) and exchange-traded notes (ETNs) that aim to track the gold price.Each gold ETF, ETN, and CEF has a different structure outlined in its prospectus. Such instruments do not necessarily hold physical gold. For example, gold ETNs generally track the price of gold using derivatives. All exchange-traded instruments, including those that hold physical gold for the benefit of the investor, carry risks beyond those inherent in the precious metal itself. The most popular gold ETF (SPDR Gold Trust, symbol GLD) has been compared with mortgage-backed securities and collateralized debt obligations due to its complexity.[2][3] The extensive analysis and criticism received by GLD is instructive for reviewing all gold ETF's, many of which are similarly complex and have received little scrutiny.

26. Demo of Trading

27. Expected size of commodity futures marketsUsually derivatives markets are much larger than the spot markets.

28. In India itself, the derivatives markets in equity instruments are at least 2 to 3 times the size of the spot markets.

29. With similar assumptions, you can expect daily volumes of Rs. 1,00,000 crores in the commodity derivatives markets. CAN YOU AFFORD TO MISS OUT ON THIS?

30. Inventure Commodities Ltd.,Promoted by Inventure Group

31. Member of NCDEX,MCX & NMCE.