MCX receives SEBI approval for Clearing Corp
The Multi Commodity Exchange of India Ltd (MCX) on Wednesday said it has received the recognition from market regulator SEBI to launch operations of its subsidiary, Multi Commodity Exchange Clearing Corporation Ltd (MCXCCL) -- the first clearing corporation in the commodity derivatives market.
 
MCXCCL, a wholly-owned subsidiary of MCX, will soon commence its operations and undertake collateral management, risk management functions and clearing and settlement of trades executed on the exchange, MCX said in a statement.
 
According to the statement from India's leading commodity bourse, MCXCCL has state-of-the-art risk management system, including various online and offline risk management tools. 
 
"It will be the central counter-party for all trades executed on MCX's trading platform and will collect margins from the members, effect pay-in and pay-out and oversee delivery and settlement process, and will also facilitate deliveries in various commodities across multiple locations in India," said the exchange. 
 
Besides, MCXCCL will also provide electronic commodity accounting and receipts tracking facility through its portal -- Commodity Receipts Information Systems (COMRIS), according to MCX.
 
Further, it will provide a settlement guarantee for all trades executed on MCX via Settlement Guarantee Fund (SGF), it added.
 
"Setting up of MCXCCL is a vital step towards elevating MCX's risk management practices, as also mandated by the regulator. At MCX, we firmly believe in stronger risk management norms for the safety of our members," said Mrugank Paranjape, MD & CEO, MCX. 
 
"We continue to enhance efficiencies in our systems and processes so that our members and their clients can trade with confidence. As we significantly step up our operational standards to adhere to regulatory requirements, we are also aware that advancement in risk management is the need of the hour."
 
According to Narendra Ahlawat, the MCXCCL MD & CEO, the new entity will provide secure, capital-efficient counter-party risk management and post-trade services to the exchange's members and their clients.
 
"It has a robust risk management framework to mitigate the risks it will undertake in its capacity as a clearing corporation," Ahlawat said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    India's Q1 gold demand up 15 percent: WGC

    The demand for gold in the first quarter of 2014 was 167.1 tonnes

     

    The demand for gold in India for the first quarter (January-March) of 2015 was at 191.7 tonnes, up by 15 percent as compared to the corresponding period of 2014, World Gold Council (WGC) said in a report on Thursday.
     
    The demand for gold in the first quarter of 2014 was 167.1 tonnes.
     
    "India's gold demand during the first quarter of 2015 was up 15 percent compared to the corresponding quarter last year, though it is still below the 5-year average," said Somasundaram P.R., managing director, India, World Gold Council.
     
    He attributed the growth to the muted demand in the same period last year due to crippling gold import policies coupled with weak economic sentiment and trade uncertainty at the time of the general elections.
     
    "In contrast, following the partial removal of the import curbs (with the exception of a duty reduction) and the budget announcements introducing new gold products, the environment for gold has been encouraging in the past few months, resulting in buying behaviour slowly returning to normalcy," he added.
     
    India's first quarter 2015 gold demand value was Rs.46,730.6 crore, a gain of nine percent in comparison with corresponding period a year ago when it was Rs.42,898.6 crore.
     
    Total jewellery demand in India for first quarter of 2015 was up by 22 percent at 150.8 tonnes as compared to 123.5 tonnes in Q1 of 2014. 
     
    Somasundaram said there are a number of factors that will shape a positive environment for gold this year. Like an upward revision of GDP growth, the government's approach to bringing gold into the mainstream economy and ensuring that gold becomes a fungible asset akin to any financial asset.
     
    Also the country's natural affinity with gold as a savings asset will support it becoming embedded in the financial sector and finally the modernisation of the jewellery trade, he said.
     
    "Notwithstanding the unseasonal rains in the early part of the calendar year which will impact the rural economy, full year demand expectations are in the range of 900-1,000 tonnes," he added.
     
  • User

    Rosland Capital and the risks of investing in precious metals
     

     
    Precious metals seller paints a grim financial picture. But investing in gold or silver may not brighten the day
     
    In case you missed it amid dystopian images of rising debt clocks and an explosion that apparently signifies “political upheaval,” let us point you to two important fine-print disclaimers in this commercial for precious metals seller Rosland Capital.
     
    Investments in precious metals and rare coins are speculative and involve substantial risks. Past performance is no indication or guarantee of future performance or returns.
     
    And:
     
    Market prices are volatile and unpredictable and may rise and fall over time. …
     
    Rosland Capital claims in the commercial — which we plucked from their website — that an investment in gold and silver can provide a level of financial stability that protects you from the so-called “chaos.” But while it’s possible that a precious metals investment can help diversify your portfolio and hedge against inflation, it doesn’t come without its inherent risks.
     
    Remember that commercials like these boil down to sales pitches. Do your research and consult an investing professional who can provide objective advice before making any big investment. And mind the fine print.
     
    Click here for more of our coverage on investing in precious metals. 
     
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