Final Geojeet

BLDEA’s Associations

A.S. Patil College of Commerce, MBA Programme, Bijapur

(Affiliated to Rani Chennamma University, Belgavi & Recognized by AICTE, New Delhi)

AUTONOMOUS

A PROJECT REPORT

ON

“Awareness Level of Commodity Market”

GEOJIT BNP Paribas Financial Services

BIJAPUR

Submitted To:RANI CHENNAMMA UNIVERSITY, BELGAVI

FOR PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION

By

RAVIKANT. JATAKAR

MBA10013

UNDER THE GUIDANCE OF

INSTITUE GUIDE ORGANISATION GUIDE

Prof. P. K. Gupta Mr. Prasanna Ajarekar

B.L.D.E.A’S A.S.PATIL COLLEGE OF COMMERCE BIJPAUR 1

BLDEA’s Associations

A. S. Patil College of Commerce, MBA Programme, Bijapur

(Affiliated to Rani Chennamma University, Belgavi & Recognized by AICTE, New Delhi)

CERTIFICATE

This is to certify that Mr. Ravikant. Jatakar has

satisfactorily completed his summer in plant project on

“Awareness Level of Commodity Market” at Geojit BNP

Paribas Financial Services, BIJAPUR, in the fulfillment of the

Requirement of Masters of Business Administration, during the

academic year 2010-2011.

GUIDE DIRECTOR

Prof. P. K. Gupta Dr. Uttam Kinangi


Acknowledgement

I am very much pleased to place before you the Project Report based on my study

in Geojit BNP Paribas Financial Services Ltd. BIJAPUR, the topic “COMMODITY

FUTURES AND AWARENESS LEVEL OF COMMODITY MARKET”

Indeed I consider it as a pleasant duty, though equally difficult to acknowledge

the motivating efforts of several people who have helped me in bringing this Project

Report to find its delight.

First of all I am expressing my deep sense of obligation to A. S. Patil College of

Commerce, MBA Programme, Bijapur and also Dr. Uttam Kinangi, Director, for

providing me opportunity to undertake this project and extend my sincere gratitude to

my internal guide Prof. P. K. Gupta for his encouragement, that has helped me in

prompt improvement and completion of project.

My deep sense of thanks to external guide Mr. Prasanna Ajerekar, Branch

Head For Geojit BNP Paribas Financial Services Ltd. Bijapurfor his valuable

guidance and consent help during the project.

Thank You.

RAVIKANT JATAKAR


DECLARATION

I hereby declare that the project report entitled “COMMODITY FUTURES

AND AWARENESS LEVEL OF COMMODITY MARKET”, submitted in partial

fulfillment of the requirements for the partial fulfillment of II Semester of Master of

Business Administration from A. S. Patil College of Commerce, MBA Programme,

Bijapur, is my original work and not submitted for the award of any other Degree /

Diploma of the Institute or any other University.

Place: Bijapur

Date: (RAVIKANT. JATAKAR )


Table of Contents

Topics Page No

Part –I: Introduction

Executive Summary

Research Methodology

Part –II: Company Profile

Overview

Milestones

Management & BOD

Vision, Values & Beliefs

Products & Services

Part –III: Theoretical Framework

Overview of Capital Market

Derivatives

Commodity Futures

Indian Commodity Futures

Hedging

Part –IV: Analysis and Interpretation

Part –V: Findings & Suggestions

Findings

Suggestions

Conclusion

Part –VI: Annexure

Questionnaire

Data Code Sheet

Bibiliography


Executive Summary

The function of the Financial Market is to facilitate the transfer of funds from

surplus sectors to deficit sector.

A derivative is a financial instrument that derives its value from an underlying

asset. This underlying asset can be stocks, bonds, currency, commodities, metals etc.,

there are different types of derivatives like:-

Futures

Forwards

Options and Swaps

A futures contract is an agreement between two parties to buy or sell the

underlying asset at a future date at today's future price

Options are deferred delivery contracts that give the buyers the right, but not the

obligation, to buy or sell a specified underlying at a set price on or before a specified

date.

A forward contract is an agreement between two entities to buy or sell the

underlying asset at a future date, at today's pre-agreed price.

Swaps are private agreements between two parties to exchange cash flows in the

future according to a prearranged formula.

I have taken the commodity futures, to study and analyze as it is the emerging

trend in the market, at Geojit Commodity Ltd. Geojit Commodity Ltd is the Subsidiary of

the Geojit BNP Paribas Financial Service Ltd., it is serving in all the areas of financial

market like Share trading, Security analysis and portfolio management and commodity

trading.

I conducted the survey in BIJAPUR City to know about the awareness of the

Commodity Market.


Commodity as an asset class possess low correlation with equity and debt markets

which makes it attractive as a portfolio diversifer.Also, long term volatility witnessed in

commodity markets is lower than that witnessed in equity markets.

When I conducted surveys with customers and, according to their view they

prefer to invest mostly in commodities like Gold, Silver, Crude oil, etc. Because

percentage of return is more of these commodities also risk is attached to it. As well as

they prefer the Capital market because of its growth and they are having fare knowledge

about that market. Most of the customers are not aware of the commodity market .So fare

knowledge about the commodity market and its operation to the public.


INTRODUCTION

PROJECT AT GLANCE

Company Name: Geojit BNP Paribas Financial Services Ltd. Bijapur

Title Awareness level of Commodity Market

Objective of the project are:

To understand the commodity market, its working and mechanism and types of

commodities traded in India.

To study the future contracts on commodities...

To find the awareness level of commodity market in BIJAPUR city.

To find the potential customers for commodity market.

To know which commodity they prefer to invest in.

Research Methodology


Title: Awareness level of commodity Market

Scope of the Study:

The study is limited to only commodity market and it is only at Geojit BNP

Paribas Financial Services Ltd. BIJAPUR. My study and analysis mainly based on the

deciding on the future price for the products. I did this by selecting the three commodities

Gold, Silver and Wheat as example. and study is limited to the BIJAPUR city only.

Sources of Data:

The data is collected through both the sources, they are:

Primary data:

The primary data has been collected from the employees of the Geojit Financial

Services Ltd...by applying Random Sampling Method

Secondary data:

The secondary data has been collected from

magazines,

newspaper,

books &

Internet etc.

Selection of Sample:


Population: People of BIJAPUR City.

Sampling Frame: People those who are trading regular basis.

Sampling Size: 100Units.

Sampling Method: Random Sampling.

Limitations of the Study:.

The study is related to only the Commodity Futures Market.

There is less investor in Commodity Market, so it is not possible to

know the investors perception regarding the Commodity Market.

The study is limited to BIJAPUR City.


COMPANY PROFILE

Company Profile


OVERVIEW

Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm in

the year 1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit became a

proprietary concern of Mr. C .J. George. In 1994, it became a Public Limited Company

by the name Geojit Securities Ltd. The Kerala State Industrial Development Corporation

Ltd. (KSIDC), in 1995, became a co-promoter of Geojit by acquiring 24% stake in the

company, the only instance in India of a government entity participating in the equity of a

stock broking company. Geojit listed at The Stock Exchange, Mumbai (BSE) in the year

2000. In 2003, the Company was renamed as Geojit Financial Services Ltd. (GFSL). The

board of the company consists of professional directors; including a Kerala government

nominee with 2/3rd of the board members being Independent Directors. With effect from

July 2005, the company is also listed at The National Stock Exchange (NSE). Geojit is a

charter member of the Financial Planning Standards Board of India and is one of the

largest DP brokers in the country.

Company aims to be a niche player in the capital market through partnership

philosophy by carefully selecting business associates and other intermediaries in other

fields.

The capital market scene is facing increasing challenges with the inflow from FII

and increased competition from national as well as international players. Introduction of

new products like margin funding is threatening to alter the competitive positioning of

existing players. In order to effectively compete and continue its growth, Company has

promoted a NBFC named Geojit Credits Private Limited and the future business plans of

this Company are being worked out.

As a result of the robust and proactive strategies adopted by the management,

Company achieved a good performance and the management is confident that the

positive trend would continue in the coming years.


Delisting

Pursuant to the special resolution passed by the members at the 9th Annual General

Meeting held on 27th September 2003 the Company has delisted its equity shares from

Delhi Stock Exchange during December 2004 in accordance with SEBI (Delisting of

Securities) Guidelines 2003.

Listing

The Equity shares of the company are listed with the Stock Exchange, Mumbai. The

Company has made an application to the National Stock Exchange of India for listing and

Shares would be listed shortly.

.

Overseas Joint Ventures

Barjeel Geojit Securities, LLC, Dubai, is a joint venture of Geojit with Al Saud

Group belonging to Sultan bin Saud Al Qassemi having diversified interests in the area of

equity markets, real estates and trading. Barjeel Geojit is a financial intermediary and the

first licensed brokerage company in UAE. It has facilities for off-line and on-line trading

in Indian capital market and also in US, European and Far-Eastern capital markets.

Doha Bank-Geojit in Qatar: Geojit has a tie up with Doha Bank in Qatar, which

offers capital market services from the India Desk.

Milestones

The company crossed the following milestones to reach its present position as a

leading retail broking house in India.


1986

Geojit becomes a member of the Cochin Stock Exchange.

1994

The Kerala State Industrial Development Corporation (KSIDC), an arm of the

Government of Kerala, becomes a co-promoter of the company by acquiring 24%

equity stake in Geojit Financial Services Ltd., based on the evaluation report of

Ernst & Young.

This is the only venture in India where a state owned development institution is

participating in the equity of a stock broking company. Geojit becomes a

corporate broking house.

1995

Geojit comes out with a small Initial Public Offer (IPO) of Rs.9.5 million, which

was oversubscribed by 15 times. Geojit's issued and subsribed equity capital

increased to Rs.30 million and KSIDC's equity stake comes down to 17%.

Geojit becomes a member of the National Stock Exchange (NSE) and installs its

first trading terminal in Cochin, Kerala.

1996

The company launches Portfolio Management Services after obtaining required

registration (Portfolio Management) from Securities Exchange Board of India

(SEBI).

1997

Geojit becomes a Depository Participant under National Securities Depository

Limited (NSDL) and begins providing Depository Services through its branches.

1999


Geojit becomes a member of The Stock Exchange, Mumbai (BSE) and activates

Bombay Online Terminals (BOLT) in different branches. The customer base of

Geojit crosses the 50,000 mark.

2000

Geojit becomes the first broking firm in the country to offer online trading

facility. The then SEBI Chairman, Mr. D.R.Mehta inaugurates the facility on 1st

February 2000.

Commences Derivative Trading after obtaining registration as a Clearing and

Trading Member in NSE.

Establishes the first Bank Gateway in the country for Internet Trading.

2001

Geojit's customer base crosses 100,000.

Becomes India's first DP to launch depository transactions through Internet.

Establishes Joint Ventures in the UAE for serving NRI clients.

The company issues bonus shares in the ratio of 1:1.

2002

Geojit ties up with MetLife for the marketing and distribution of insurance products

across the country.

The company becomes the first online brokerage house to launch integrated

internet trading system for both cash and derivatives segments.

Sheikh Sultan Bin Saud Al Oassemi, a member of the ruling family of Sharjah,

UAE, joins the Board of Directors of Geojit.

2003

Geojit Commodities Limited, a wholly owned subsidiary of Geojit, becomes

member of National Multi-Commodity Exchange of India Ltd., National

Commodity & Derivatives Exchange Ltd., Multi Commodity Exchange and

launches Commodity Futures Trading in rubber, pepper, gold, wheat and rice


Geojit Commodities Limited launches Online Futures Trading in multiple

commodities namely, agri-commodities, precious metals like gold and silver,

with furnace oil.

Geojit raises more than Rs.100 million through issue of preferential shares.

2005

Barjeel Geojit Securities LLC becomes a member of Dubai Gold Commodity

Exchange.

Customer base of Geojit crosses 250,000.

Geojit's reach spreads through a network of more than 300 branches.

The company issues bonus shares in the ratio of 1:1.

Geojit Credits, a subsidiary of Geojit Financial Services Ltd. registers with

Reserve Bank of India as a Non-Banking Financial Company (NBFC).

The company gets listed on National Stock Exchange of India Limited.

The company implements Employees Stock Option Scheme.

The company opens a first of its kind - all women's branch in Cochin.

2006

Geojit re launches Internet trading on Reuters TIB Mercury Platform.

2007

BNP Paribas takes a stake in the company equity, making it the single largest

sharelholder.

Establishes joint venture in Saudi Arabia to serve the Saudi national and the NRI

2008

BNP Paribas Securities India (P) Ltd. – a Joint Venture with BNP Paribas S.A. for

Institutional Brokerage

1st brokerage to offer full direct market access execution in India for institutional

clients.


2009

Launch of property services division

Launch of online trading in currency derivatives

Consequent to BNP Paribas becoming the largest stakeholder in Geojit Financial

Services, company is renamed as Geojit BNP Paribas Financial Services Ltd

The McKinsey 7S Framework

Ensuring that all parts of your organization work in harmony


How do you go about analyzing how well your organization is positioned to achieve its

intended objective? This is a question that has been asked for many years, and there are

many different answers. Some approaches look at internal factors, others look at external

ones, some combine these perspective, and others look for congruence between various

aspects of the organization being studied. Ultimately, these issue comes down to which

factors to study.

The 7S model can be used in a wide variety of situations where an alignment

perspective is useful, for example to help you:

Improve the performance of a company.

Examine the likely effects of future changes within a company

Align departments and processes during a merger or acquisition

Determine how best to implement a proposed strategy.

Management

Mr. C. J. George Managing Director


Mr. Punnose George Director

Mr. Satish Menon Chief Operating Officer

Mr. Binoy .V.Samuel Chief Financial Officer

Mr. A. Balakrishnan Chief Technology Officer

Mrs. Jaya Jacob Alexander Chief, Human Resources

Mr. K. Venkitesh Head - Channel Sales and Distribution

Ms. Farzana Khan Head-Online Products, Services and Operations

Board of Directors

Mr. A. P. Kurian Non - Executive & Independent Chairman

Mr. C. J. George Managing Director & Chief Promoter

Mr. Jiji Thomson Non - Executive & Independent Director

Sheikh Sultan Bin Saud Al Qassemi Non - Executive & Independent Director

Mr. P. C. Cyriac Non - Executive & Independent Director

Mr. Mahesh Vyas Non - Executive & Independent Director

Mr. Rakesh Jhunjhunwala Non - Executive Director

Mr. Ramanathan Bupathy Non - Executive & Independent Director

Mr. Punnoose George Non - Executive Director

ORGANIZATION CHART


Vision


“We will continually strive to raise our products and service standards by intelligent

application of technology and processes.”

Values and Beliefs

We understand and respect customer needs to consistently deliver total quality

solutions through constant skills up gradation.

We believe that our company culture helps to attract and retain best talent.

We uphold uncompromising ethical standards and strive to maintain a distinctive

identity in public mind shore through innovation and quality

We are committed to achieve profitable progress consistently.

We freely share our investment experience across all ages and strata of society to

encourage wise investment for a better future.

PRODUCTS AND SERVICES


1. Equity

2. Depository

3. Portfolio management services

4. Distribution

5. Futures and Options

6. Commodity

7. Services and distribution

8. Research


THEORETICAL FRAME WORK


An Overview of the Capital Market

INTRODUCTION

The deregulation and liberalization of the industry in India has been accompanied

by change in financial sector. It is widely acknowledged that economic development of a

country is directly related to the level of its industrial growth. The process of industrial

growth essentially requires the development of capital market, which provides long-term

finance to entrepreneurs. The capital market aims at mobilization & efficient allocation of

resources to the desired investment outlets & thus, plays a vital role in the development

of the national economy. The Indian capital market has been experiencing a process of

structural transformation since the early eighties signifying the widening & deepening of

the market by showing notable increases both in the number of participants as well as

instruments.

DEFINITION & MEANING OF CAPITAL MARKET

The dictionary of commerce defines capital market as a market for medium and

long-term finance.

Capital market is one of the sources for raising long-term finance by the

corporate. Capital market is the medium through which the companies and investors

interact. The companies will enter the capital market with shares and/or debenture issues,

which are subscribed by the investors. The investors will evaluate the company’s

offerings and based on the credentials of the offer take decisions regarding investment.

The primary purpose of capital market is to direct the flow of savings into long term

investments.


TYPES OF CAPITAL MARKET

On the basis of the status of the market, the capital markets in India is classified as

a) Organized capital market and

b) Unorganized capital market

ORGANIZED CAPITAL MARKET

The constituents of the organized capital market are the Reserve Bank of India

financial institutions like IFCI, LIC, IDBI, UTI commercial banks, stock markets etc.

In the organized capital market the demand for capital comes from corporate

enterprises and government and semi-government institutions and supply comes from

household savings, institutions investors like banks investments trusts, insurance

companies, finance corporations, governments and international financing agencies.

UNORGANIZED CAPITAL MARKET

Unorganized capital market consists of indigenous bankers, money lenders, chit

funds, traders etc.

A large part of the demand for funds in the unorganized capital market is for

consumption purposes. In fact many purposes, for which funds are very difficult to get

from the organized market, are financed by the unorganized sector. Unorganized capital

market in India is characterized by the existence of multiplicity of interest rates,

exorbitant rates of interest and lack of uniformity in their business dealings.


On the basis of stage of development, capital market is classified into two types,

viz.,

i) Primary capital market

ii) Secondary capital market

PRIMARY CAPITAL MARKET OR NEW ISSUE MARKET

Primary capital market is market for new issues, where long term funds are raised

by industrial, commercial enterprises, state government & central government from

investors through the issue of shares, debentures & bonds.

SECONDARY CAPITAL MARKET OR STOCK EXCHANGE

MARKET

Secondary market is markets for secondary sale of securities which have already

passed through the new issue market are traded in this market. An active secondary

market actually promotes the growth of the primary market & capital formation because

investors in the primary market are assured of a continuous market & they can liquidate

their investments.


Derivatives

Derivatives defined

A derivative is a product whose value is derived from the value of one or more

underlying variables or assets in a contractual manner. The underlying asset can be

equity, forex, commodity or any other asset.

Products, participants and functions

Derivative contracts are of different types. The most common ones are forwards,

futures, options and swaps. Participants who trade in the derivatives market can be

classified under the following three broad categories hedgers, speculators, and

arbitragers.

1. Hedgers: Hedgers face risk associated with the price of an asset. They use the

futures or options markets to reduce or eliminate this risk.

2. Speculators: Speculators are participants who wish to bet on future movements in

the price of an asset. Futures and options contracts can give them leverage; that is, by

putting in small amounts of money upfront, they can take large positions on the market.

As a result of this leveraged speculative position, they increase the potential for large

gains as well as large losses.

3. Arbitragers: Arbitragers work at making profits by taking advantage of discrepancy

between prices of the same product across different markets. If, for example, they see the

futures price of an asset getting out of line with the cash price, they would take offsetting

positions in the two markets to lock in the profit.

Some commonly used derivatives


Some of the more popularly used derivative contracts.

Forwards :

A forward contract is an agreement between two entities to buy or sell the

underlying asset at a future date, at today's pre-agreed price.

Futures:

A futures contract is an agreement between two parties to buy or sell the

underlying asset at a future date at today's future price. Futures contracts differ from

forward contracts in the sense that they are standardized and exchange traded.

Options:

There are two types of options - calls and puts.

Calls give the buyer the right but not the obligation to buy a given quantity of

the underlying asset, at a given price on or before a given future date.

Puts give the buyer the right, but not the obligation to sell a given quantity of

the underlying asset at a given price on or before a given date.

Warrants :

Options generally have lives of up to one year, the majority of options traded

on options exchanges having a maximum maturity of nine months. Longer dated

options are called warrants and are generally traded over-the-counter.

Baskets :


Basket options are options on portfolios of underlying assets. The underlying

asset is usually a weighted average of a basket of assets. Equity index options are

a form of basket options.

Swaps :

Swaps are private agreements between two parties to exchange cash flows in

the future according to a prearranged formula. They can be regarded as portfolios

of forward contracts. The two commonly used swaps are:

o Interest rate swaps: These entail swapping only the interest related cash

flows between the parties in the same currency.

o Currency swaps : These entail swapping both principal and interest

between the parties, with the cash flows in one direction being in a

different currency than those in the opposite direction.

Swaptions :

Swaptions are options to buy or sell a swap that will become operative at the

expiry of the options. Thus a swaption is an option on a forward swap.


Futures vs. Forwards

A futures contract is very similar to a forward contract, which is also a contract to

trade on a future date. The main differences are, that:

futures are always traded on an exchange, whereas forwards always trade over-

the-counter

futures are highly standardized, whereas each forward is unique

the price at which the contract is finally settled is different:

o futures are settled at the settlement price fixed on the last trading date of

the contract (i.e. at the end)

o forwards are settled at the forward price agreed on the trade date (i.e. at

the start)

the credit risk of futures is much lower than that of forwards:

o The profit or loss on a futures position is exchanged in cash every day.

After this the credit exposure is again zero.

o the profit or loss on a forward contract is only realized at the time of

settlement, so the credit exposure can keep increasing

In case of physical delivery, the forward contract specifies whom to make the

delivery to. The counter party on a futures contract is chosen randomly by the

exchange.


Evolution of the commodity market in India

Bombay Cotton Trade Association Ltd., set up in 1875, was the first organised

futures market. Bombay Cotton Exchange Ltd. was established in 1893 following the

widespread discontent amongst leading cotton mill owners and merchants over

functioning of Bombay Cotton Trade Association. The Futures trading in oilseeds started

in 1900 with the establishment of the Gujarati Vyapari Mandali, which carried on futures

trading in groundnut, castor seed and cotton. Futures trading in wheat were existent at

several places in Punjab and Uttar Pradesh. But the most notable futures exchange for

wheat was Chamber Of Commerce at Hapur set up in 1913. Futures trading in bullion

began in Mumbai in 1920. Calcutta Hessian Exchange Ltd. was established in 1919 for

futures trading in rawjute and jute goods. But organised futures trading in raw jute began

only in 1927 with the establishment of East Indian Jute Association Ltd. These two

associations amalgamated in 1945 to form the East India Jute & Hessian Ltd. to conduct

organised trading in both Raw Jute and Jute goods. Forward Contracts (Regulation) Act

was enacted in 1952 and the Forwards Markets Commission (FMC) was established in

1953 under the Ministry of Consumer Affairs and Public Distribution. In due course,

several other exchanges were created in the country to trade in diverse commodities.


Commodities Traded In India

Commodities

Bullion Gold, Gold HNI, Gold M, I-Gold, Silver, Silver HNI, Silver M

Oil and Oil Seeds

Castor Oil, Castor Seeds,

Cottonseed, Crude Palm Oil, Groundnut Oil, Kapasia Khalli

(Cottonseed Oilcake), Mustard /Rapeseed Oil,

Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil, Sesame

Seed, Soymeal, Soy Seeds

Spices Cardamom, Jeera, Pepper, Red Chilli

Metals

Aluminium,

Copper, Nickel, Sponge Iron, Steel Flat, Steel Long (Bhavnagar),

Steel Long (Gobindgarh), Tin, Zinc

FibreCotton Long Staple ,Cotton Medium Staple,Cotton Short Staple,

Kapas

Pulses Chana, Masur, Tur, Urad, Yellow Peas,

Cereal Basmati Rice, Maize, Rice, Sarbati Rice, Wheat

Energy Brent Crude Oil, Crude Oil,Furnace Oil

Plantation Cashew Kernel, Rubber

Petro-Chemical High Density Polyethylene (HDPE), Polypropylene (PP), PVC

OthersGuar Seed, Guargum, Gurchaku, Mentha Oil, Potato, Sugar M-30,

Sugar S-30,


http://www.mcxindia.com/groundnut_oil.aspx

COMMODITY FUTURES

Commodity futures are the part of the derivatives. India has a long history of

commodity futures trading, extending over 125 years. As the country embarked on

economic liberalization policies and signed the GATT agreement in the early nineties, the

government realized the need for futures trading to strengthen the competitiveness of

Indian agriculture and the commodity trade and industry.

Statutory framework for regulating commodity futures exists in India

Commodity futures contracts and the commodity exchanges organizing trading in

such contracts are regulated by the Government of India under the Forward Contracts

(Regulation) Act, 1952 (FCRA or the Act), and the Rules framed there under. The nodal

agency for such regulation is the Forward Markets Commission (FMC), situated at

Mumbai, which functions under the aegis of the Ministry of Consumer Affairs, Food &

Public Distribution of the Central Government.

"Commodity"

Commodity includes all kinds of goods. FCRA defines "goods" as "every kind of

movable property other than actionable claims, money and securities". Futures' trading is

organized in such goods or commodities as are permitted by the Central Government. At

present, all goods and products of agricultural (including plantation), mineral and fossil

origin are allowed for futures trading under the auspices of the commodity exchanges

recognized under the FCRA. The national commodity exchanges have been recognized

by the Central Government for organizing trading in all permissible commodities which

include precious (gold & silver) and nonferrous metals; cereals and pulses; ginned and

unginned cotton; oilseeds, oils and oilcakes; raw jute and jute goods; sugar and gur;

potatoes and onions; coffee and tea; rubber and spices, etc.


"Commodity Exchange"

A commodity exchange is an association, or a company or any other body

corporate organizing futures trading in commodities.

Meaning of "Futures Contract"

A futures contract is an agreement between two parties to buy or sell a specified

quantity and quality of asset at a certain time in future at a certain price agreed at the time

of entering into the contract on the futures exchange.

A futures contract is a type of "forward contract". FCRA defines forward contract

as "a contract for the delivery of goods and which not a ready delivery contract is". Under

the Act, a ready delivery contract is one, which provides for the delivery of goods and the

payment of price there for, either immediately or within such period not exceeding 11

days after the date of the contract, subject to such conditions as may be prescribed by the

Central Government. A ready delivery contract is required by law to be fulfilled by

giving and taking the physical delivery of goods. In market parlance, the ready delivery

contracts are commonly known as "spot" or "cash" contracts.


Objectives of commodity futures are as follows.

Hedging - price risk management by risk mitigation

Speculation - take advantage of favorable price movements

Leverage - pay low margin to enjoy large exposure

Liquidity - ease of entry and exit of market

Price discovery - for making farming and business decisions

Price stabilization along with balancing demand and supply position

Facilitates integrated price structure

Flexibility, certainty and transparency in purchasing commodities facilitate bank

Financing.

Facilitates 'informed' lending to the banks.


Benefits of Commodity Future Market

It benefits to

Farmers

Efficient Price Discovery/Forecast made by the exchange will enable farmers

decide cropping pattern and investment on inputs.

Price Stability resulting from equilibrium in supply and demand for a commodity

would be possible through exchanges.

Get an extensive market opened for them.

Get opportunity to trade, knowing the national and international trends and

standards.

Can sell the commodity to the customer without any agents.

Can decide the market even before harvest.

Farmers can trade by asking the help of the experts in trading organizations even

if they are computer illiterate.

Traders

Can trade by spending only the margin amount.

Can sell the commodities that he buys from the ready market and can rescue

himself from the loss happening from price fall..


Consumer, Industrialist & Exporters

Can be sure that the commodity is available when they require it.

Can calculate the price since it is predetermined and can arrange everything

according to that.

Can buy goods without agents.

Can buy them even while sitting in their office.

Can be assured the quality of the good.

Commodity futures trading cycle

NCDEX trades commodity futures contracts having one-month, two-month and three-month expiry cycles. All contracts expire on the 20th of the expiry month. Thus a January expiration contract would expire on the 20th of January and a February expiry contract would cease trading on the 20th of February. If the 20th of the expiry month is a trading holiday, the contracts shall expire on the previous trading day. New contracts will be introduced on the trading day following the expiry of the near month contract. Figure shows the contract cycle for futures contracts on NCDEX.


Benefits of trading in commodity futures

Futures’ trading in commodities results in transparent and fair price discovery on

account of large-scale participation and reflects views and expectations of wider

section of people related to those commodities. Producers, traders and processors,

exporters/importers get an online platform through different exchanges for price risk

management. It provides a platform for producers to hedge their positions according

to their view of the prices. The brokerage is expected to be 0.25% of the transaction

value.

Indian Commodity Futures Market

Introduction:

Global commodity market volumes far exceed that of markets. In India too, this

market is expected to generate volumes exceeding today’s equity and derivative volumes.

It is being estimated that international trading in commodity futures market is expected to

be around five to ten times of physical commodity markets in the next few years. In

India, one can expect commodity futures market to be at least five times (at around Rs.

55.000 billion) that of the physical commodity markets (at around Rs 11,000 billion), at

least over the next five years. Retail, corporate or institutional investors can now manage

their commodity price-risk through participation in this market.


Regulatory Frame work

Commodity Futures Trading functions under three tier regulatory framework.

1. Commodity Exchanges:

2. Forward Markets Commission (FMC)

3. Department of Consumer Affairs, Government of India

Commodity Exchanges:

The commodity Exchange is responsible for the orderly conducting of trade as per

the rules and bylaws of FMC.

Forward Markets Commission (FMC):

The market regulator is responsible for recommending approvals of exchanges,

approves bylaws of exchanges and engages in surveillance for orderly conduction of

Future Trading.

Department of Consumer Affairs, Government of India:

The Ministry of Consumer Affairs, Food and Public Distribution approves the

Exchanges, approves a Commodity for Futures Trading and formulates policies and rules.

The National level multi-commodity exchanges are:

1. National Multi Commodity Exchange of India Ltd, Ahmedabad (NMCE)

The First De-Merged Electronic multi commodity exchange of India Granted the

National status on a permanent basis by the government of India and operational

since 26th November 2002.This is presently working on-line and trading in many

active commodities like castor seed/oil, rapeseed and mustard seed/oil, aluminum,

soybean/oil, pepper, gold, silver etc. www.nmce.com.


http://www.nmce.com/

2. National Board of Trade, Indore (N-BOT)--www.nbotind.org. This is also

presently working but not completely on-line, screen-based. In this exchange

maximum trades are carried out in soy oil. It is incorporated on July 30, 1999 to

offer integrated, state-of-the-art commodity futures exchange

3. National Commodity and Derivative Exchange, Mumbai (NCDEX)-- The

exchange is being promoted by ICICI Bank, National Stock Exchange (NSE), Life

Insurance Corporation and NABARD. It is more or less on the lines of the NSE of

the capital market. NCDEX is a public limited company incorporated on April 23,

2003 under the Companies Act, 1956. It obtained its Certificate for Commencement

of Business on May 9, 2003. It has commenced its operations on December 15,

2003. www.ncdex.com

4. Multi Commodity Exchange of India Ltd, Mumbai(MCX) www.mcxindia.com

The exchange is promoted mainly by professionals and supported by Financial

Technology (FT). The exchange has started operations from November 10 2003 and

has offered gold, silver and castor seed in the first phase of trading facility. The key

share holders are State Bank of India (India’s largest commercial bank) & associates,

Fidelity International, National Stock Exchange of India Ltd. (NSE), National Bank

for Agriculture and Rural Development (NABARD), HDFC Bank, SBI Life

Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of India, Bank of

Baroda and Corporation Bank.


http://www.mcxindia.com/

http://www.nbotind.org/

The general risks associated with commodity futures

The different types of risks associated with commodity futures are as follows:

1. Credit risks

These are the usual risks associated with counter party default and which

must be assessed as part of any financial transaction.

2. Market risks

These are associated with all market variables that may affect the value of

the contract, for e.g., a change in the price of the underlying instrument

3. Operational risks

These are the risks associated with the general course of business

operations and include:

a. Settlements risks,

b. Legal risks, and

c. Deficiencies in information, monitoring and control systems, which result in

fraud, human error, system failures, management failures etc. Settlement risk

arises as a result of the timing differences between when an institution either pays

out funds or deliverable assets before receiving a assets or payments from a

counter party. Legal risk arises when a contract is not legally enforceable, reason

being

Inadequate documentation

The counter party lacks the required authority to enter into the

transaction

The underlying transaction is not permissible

Bankruptcy or insolvency of the counter party changes the contract

conditions


4. Strategic risks

These risks arise from activities such as:

1. Entrepreneurial behavior of traders in financial institutions

2. Misreading client requests

3. Costs getting out of control

4. Trading with inappropriate counter parties.

5. Environmental Risk

This risk mainly on the agricultural commodities, which are dependent on

the climatic conditions, Unfavorable climatic conditions like flood etc., leads to

loss of the production.

6. Political Risk:

Due to the combination of government actions, ineffective legal systems,

war and revolution affect the prices of the commodities.


Pricing commodity futures

Commodity futures began trading on the NCDEX from the 14th December 2003.

The market is still in its nascent phase; however the volumes and open interest on the

various contracts trading in this market have been steadily growing.

The process of arriving at a figure at which a person buys and another person sells

a futures contract for a specific expiration date is called price discovery. In an active

futures market, the process of price discovery continues from the market's opening until

its close. The prices are freely and competitively derived. Future prices are therefore

considered to be superior to the administered prices or the prices that are determined

privately. Further, the low transaction costs and frequent trading encourages wide

participation in futures markets lessening the opportunity for control by a few buyers and

sellers.

In an active futures markets the free flow of information is vital. Futures

exchanges act as a focal point for the collection and dissemination of statistics on

supplies, transportation, storage, purchases, exports, imports, currency values, interest

rates and other pertinent information. Any significant change in this data is immediately

reflected in the trading pits as traders digest the new information and adjust their bids and

offers accordingly. As a result of this free flow of information, the market determines the

best estimate of today and tomorrow's prices and it is considered to be the accurate

reflection of the supply and demand for the underlying commodity. Price discovery

facilitates this free flow of information, which is vital to the effective functioning of

futures market.

In this chapter we try to understand the pricing of commodity futures contracts

and look at how the futures price is related to the spot price of the underlying asset. We

study the cost-of-carry model to understand the dynamics of pricing that constitute the

estimation of fair value of futures.


HEDGING:

Hedging is a mechanism to reduce price risk inherent in open positions. Derivatives

are widely used hedging. A hedge can help lock in existing profits. Its purpose is to

reduce the volatility of a portfolio, by reducing the risk.

Hedging does not mean maximization of return. It only means reduction in variation

of return. It is quite possible that the return is higher in the absence of the hedge, but so

also is the possibility of much lower return.

Basic principle of hedging:

When an individual or a company decides to use the futures markets to hedge a risk, the

objective is to take a position that neutralizes the risk as much as possible.

Kinds of Hedging

There are basically two kinds of hedges that can be taken.

Short Hedge

Long Hedge

Short Hedge

A short hedge is a hedge that requires a short position in futures contracts. A short

hedge is appropriate when the hedger already owns the asset, or is likely to own the asset

and expects to sell it at some time in the future.

For example:

A short hedge could be used by a cotton farmer who expects the cotton crop to be

ready for sale in the next two months.

Long Hedge


Hedges that involve taking a long position in a futures contract are known as long

hedges. A long hedge is appropriate when a company knows it will have to purchase a

certain asset in the future and wants to lock in a price now.

For Example:

Suppose that it is now January 15. A firm involved in industrial fabrication knows

that it will require 300 kgs of silver on April 15 to meet a certain contract. The spot price

of silver is Rs.1680.

Advantages of hedging

Besides the basic advantage of risk management, hedging also has other

advantages:

Hedging stretches the marketing period. For example, a livestock feeder does not have to

wait until his cattle are ready to market before he can sell them. The futures market

permits him to sell futures contracts to establish the approximate sale price at any time

between the time he buys his calves for feeding and the time the fed cattle are ready to

market, some four to six months later. He can take advantage of good prices even though

the cattle are not ready for market.

Hedging protects inventory values. For example, a merchandiser with a large, unsold

inventory can sell futures contracts that will protect the value of the inventory, even if the

price of the commodity drops

Limitations of Hedging


The asset whose price is to be hedged may not be exactly the same as the asset

underlying the futures contract.

The hedger may be uncertain as to the exact date when the asset will be bought or sold.

Often the hedge may require the futures contract to be closed out well before its

expiration date. This could result in an imperfect hedge.

SWOT Analysis

SWOT Analysis identifies factors that may affect desired outcomes of the organization. The SWOT model is based on identifying the organizational internal strengths and


weakness and external threats and opportunities and consequently identifying the company’s distinctive competence and success factors.

STRENGTH

Geojit takes pride in its employees and their exceptional qualities which form the core strength of the company

It is well established financial firm which has its branches all over India and overseas.

It is the first one to start the online trading fund transfer. Global banking major BNP Paribas joined the company’s other major

shareholders – Mr. C. J. George, KSIDC (Kerala State Industrial Development Corporation).Pioneer in market in following field which are the strengths.

1st to launch integrated internet trading system for cash and derivative segments in the year 2002.

1st Indian stock broking company to commence domestic retail broking operations in any foregn country.

1st in the industry to have a global player offeringits name thereby creating Geojit BNP Paribas.

1st to launch exclusive branches for women in 2005.

WEAKNESS There are not much promotions programs done for the awareness of the general

public of the Geojit firm. Maintenance standards are not to the level of the world-class organization and

latest systems of automation. Old mind-set of managerial practices based on rigidities of rule.

OPPORTUNITIES

The market covered only 16% so there is lot of opportunities for the growth and the company can get more and more clients.

The percentage of retail savings that is channeled into equities and equity related products in the country are still much lower than in developed countries.

Fast economic growth generating higher savings and better corporate performance is likely to provide growth opportunites for the business of the company.

The close association with the large and globally reputed partner like BNP Paribas would assist in exploring avenues for growth.

THREATS

Capital market activities in which most of activities depend on is also influenced by global events and hence there is an amount of uncertainty in the near term outlook of the market.


The economic crisis in some countries in the Europe has added some volatility globally and Indian Stock market has not yet decoupled from such global trends.

The recent increase in inflation rate in india is a cause of concern as it can affect corporate profitablitiy.

ANALYSIS AND


INTERPRETATIONI have taken 3 products to study and to analyze.

1. Gold 2. Silver3. Wheat

GRAPHICAL REPRESENTATION

Q.NO 1 : Which among these investment criteria you usually prefer?

Bank Real Stocks Life Gold Mutual Bonds Derivates Others


Deposit Estate Insurance Funds Market

22 8 25 10 18 6 2 4 5

No.of Responses0

5

10

15

20

25

Bank Deposit

Real Estat

Stocks

Life incurance

Gold

Mutual Funds

Bonds

Derivates Market

Others

Interpretation:

According to the survey we came to know that 22 respondents are invested

in Bank deposits,8 are in Real eastae,25 in stocks,10 in life insurance,18 in Gold,6 in

Mutual funds,2 in Bonds,4 in Derivatives Market,and5 others. so most of the respondents

are invested in Bank deposits ,Stok and Gold.

Q.No.2 : Are you aware of commodity Market?


Yes No

37% 63%

Interpretation :

The awareness level of respondents towards commodity market is 37%

and 63 % of the respondents are not aware of the commodity market. So majority of he

respondents are not aware of this commodity market. So Awareness has to be made.

Q.No3 : Are you invested in Commodity market?


010203040506070

Awarness of Commodity Market

Yes

No

Opinoins

No of Re-spondents

yes No

35% 65%

Interpretation:

By conducting this survey we found that 35% of respondents are invested

in commodity market. And 65 % of the respondents are not invested in commodities. So

here the majority is lies with the respondents who are not invested in commodities.

Q.No4 : If yes, since how long are you trading with commodities?


010203040506070

Investment in commodity market

Yes

NO

opnions

NO of responses

<1 year 1-3 years >3 years

35%

20% 5%

Series1 NaN NaN NaN

Series2 NaN NaN NaN

Series3 NaN NaN NaN

1

3

5

7

9

Interpretation:

From this we can know that 35% of the respondents are invested less then

one year., and 20% of respondents are invested in 1to 3 years and 5% of respondents

invested in more then three years. so here majority lies with the respondents who have

invested in less then one year.


Q .No 5 : If no, would you like to have knowledge of commodities market?

Yes No

60% 40%

Interpretation:

From this we find that 60% of the respondents they would

like to

have the knowledge of commodity market and 40% respondents are not

interested to know about this commodity market. Hence we should give

them the knowledge of commodity market in best manner.


48

48.5

49

49.5

50

50.5

51

Knowledge of Commodity Market

Yes

No

opnions

No of re-

sponses

Q.No6: Which among these commodities are you interested to trade with? How

do you rate them?

Gold

Yes No

73% 27%

012345678910

Gold

Series1

opinoins

No of responses

Interpretation:

Among the different commodities 73% of the respondents are interested to trade in Gold,

and 27% of the respondents are not interested to trade in gold. Here the majority of the

respondents are interested to trade in gold .

Silver


Yes No

42% 58%

012345678910

Silver

Series1

Series2

opinions

No of responses

Interpretation:

Here 42% of the respondents are interested to trade in Silver, and

58% of respondents are not interested to trade in this silver. Hence most of the

respondents does not interested to trade in silver.


Crude Oil

Yes No

75% 25%

012345678910

Crude oil

Series1

Series2

opinions

No of Re-

sponses

Interpretation

From this we came to know that 75% of the respondents are interested to trade in Crude

oil ,and 25%of the respondents are not interested to trade in this commodity. Hence

majority lies with the respondents who are interested to invest in this crude oil.


Sugar

Yes No

69% 31%

0

1

2

3

4

5

6

7

8

9

10

Sugar

Series1 Series2

Series3 Series4

Opinion

No of Responses

Interpretation:

Here 69% of the respondents are interested to invest in sugar ,and 31% of respondents

are not interested to invest in this crude oil. So majority of the respondents are interested

to invest in this crude oil.

Wheat


Yes No

39% 61%

012345678910

Wheat

Series1

Series2

Series3

Series4

Opinions

No of responses

Interpretation:

Here39% of the respondents are interested to trade in this wheat but 61% of respondents

are not interested to trade in this commodity .so majority here is that most of the

respondents are not interested to trade in wheat.


Gold (Ratings)

Items Gold Silver Crude oil Sugar Wheat

Ratings 31% 32% 14% 11% 12%

Series1 NaN NaN NaN NaN NaN

1

3

5

7

9

Gold

Ratings

Opinions

Interpretation:

From this survey we can know that 31% of respondents have given 1 preference to

gold .32% are given 2 preference ,14%respondents have given3rd preference,11%are

given 4Th preference 12% have given 5ht preference. so majority here is 32% of

respondents have given 2nd preference.


Silver(Ratings)


Ratings 28% 32% 14% 14% 12%


1

3

5

7

9

Silver

Ratings

No of Responses

Interpretation:


Silver .32% are given 2 preference ,14%respondents have given3rd preference,14%are

given 4Th preference 12% have given 5ht preference. So majority here is 32% of

respondents have given 2nd preference.


Crude oil (Ratings)


Ratings 20% 14% 35% 17% 14%


1

3

5

7

9

Crude oli

Ratings

No of Responses

Interpretation:


Crude oil .14% are given 2 preference, 35%respondents have given3rd reference,17%are


respondents have given 3rd preference to the crude oil. .

Sugar(Ratings)



Ratings 27% 14% 15% 34% 10%


1

3

5

7

9

Sugar

Ratings

No of Responses

Interpretation:


Sugar.14% are given 2 preference ,15%respondents have given3rd preference,34%are


respondents have given 4th preference to the sugar .

Wheat(Ratings)



Ratings 13% 14% 24% 13% 35%


1

3

5

7

9

Wheat

Ratings

No of Re-

sponses

Interpretation:


Wheat.15% are given 2 preference ,24%respondents have given3rd preference,13%are


respondents have given 5th preference to the wheat..

Q.No7: Which Factors do you normally see while trading in commodity market?


Price Season Market Rate Risk Returns Liquidity Safety

30% 5% 7% 20% 27% 5% 6%

0

2

4

6

8

10

12

Factors for Trading in commodity market

Series1 Series2

Series3 Series4

Series5

Factors

No o

f Res

pons

es

Interpretation:

From this survey we found that while trading in commodity market 30%of the

respondents will see this price factor while investing in this. And 5% will

see season ,7&% will see market rate and 20% will see risk ,27%will see the returns 5%

will see liquidity and remaining 6% will see safety while investing in this commodity

market.

Q.No8: Which facilities do you expect from service provider of a commodity trading?

Up-To Date Information


1 2 3 4 5

18% 36% 18% 17% 11%


1

3

5

7

9


Ratings

No of Responses

Interpretation:

Here 18% of the respondents expect up-to date information from the service provider,

and 36% of respondents will expect market knowledge ,18% will expect less

brokerege ,17% will see the comforts, 11% will expect Good service.so majority of the

respondents will expect Market knowledge from the service provider of the commodity.

Market Knowledge

1 2 3 4 5

46% 16% 13% 15% 10%



1

3

5

7

9

Market knowledge

Ratings

No of Responses

Interpretation:



brokerage ,15% will see the comforts, 10% will expect Good service. so majority of the

respondents will expect up-to date information from the service provider of the

commodity.

Less Brokerage

1 2 3 4 5

70% 3% 6% 14% 7%



1

3

5

7

9

LessBrokerage

Ratings

No of Responses

Interpretation:



brokerage ,14% will see the comforts, 7% will expect Good service.so majority of the

respondents will expect Up-to –date information from the service provider of the

commodity.

Comforts

1 2 3 4 5

15% 11% 19% 24% 31%



1

3

5

7

9

Comforts

Ratings

No of Re-

sponses

Interpretation:


and11% of respondents will expect market knowledge ,19% will expect less

brokerage ,24% will see the comforts, 31% will expect Good service.so majority of the

respondents will expect Good Service.from the service provider of the commodity.

Good Service

1 2 3 4 5

16% 26% 13% 16% 19%



1

3

5

7

9

Good Service

Ratings

No of Re-

sponses

Interpretation:


and 26% of respondents will expect market knowledge, 13% will expect less brokerage,

16% will see the comforts, 29% will expect Good service. So majority of the respondents

will expect Good Service from the service provider of the commodity.


FINDING&

SUGGESTIONS

Findings

Commodity Futures have a bright future in coming days.

Price of a commodity is dependent on its demand and supply of that commodity

in the market.


As the commodity future market is new and emerging, many investors and

farmers are not fully aware of this market. As this market, helps them to trade

transparently without middlemen or agents to earn the good profits.

Consumption products are perishable in nature, so investing in these

commodities are risky, as compared to investment commodities. And also there

is a normal loss may arise which should be bared by the trader in case he wants

delivery.

Here 63% of the respondents are not aware of the commodity market.

There is no growth in commodity market, and it is in the initial stage.

65% of the respondents are not invested in commodity market.

60% of respondents are interested to invest in the commodity market.

73% of the respondents are interested to invest in the gold,42%in silver,75%in

crude oil,69%in sugar,39%in wheat.

Most important factor the respondents will see while investing is Price 30% and

27% Returns.

The investor has to invest only 5% of margin and he can hold the commodity.

The commodity market prices depend upon the demand & supply as well as on

global market.

The investor should know the market idea, within a range he has to play. In spot

market for commodity, the investors have to understand the price movement, and

in future market it is difficult to play without knowing the spot market.

Suggestions:

Creating the awareness among the people and farmers about commodity market

through:

Making presentations in the villages to the farmers by video and

explaining them the uses and benefits of the commodity market


Educate them on how to trade the commodity futures, i.e. getting

in to the contract before harvesting only, to get the minimum

guarantees.

The Company should inform the benefits of Commodity trading to the present

investors who are investing in cash market.

Agents should be given information regarding changes in

the price margins of different commodities, because they are not aware of the

market.

Company should approach people who are already into the business of gold,

silver , sugar ,crude oil etc.

Through personal contact we can create awareness.

Conclusion:

The commodity futures market is new and emerging market. The

awareness of the market is very less among the farmers who can use this trade to


sell their products without the middlemen or agents it also helps the actual buyers

too. The study of price volatility helps the traders to trade effectively even it have

some draw-backs they can be avoided with careful study and observation of

current happenings in market, political issues, change in demand and supply,

production and consumption pattern etc,. Here trader also can transfer his risk to

some other who can handle it or can appetite the risk through hedging technique.

The cash market also influences the commodity future market.

ANNEXUREBIBLIOGRAPHY

Geodata


Magazines, and News paper

Reports

Brouchers

Web Sites:

www.nseindia.com

www.geojit.com

www.google.com

www.commodityindia.com

Questionnaire

Dear Sir /Madam


http://www.commodityindia.com/

http://www.google.com/

http://www.geojit.com/

http://www.nseindia.com/

I am a student of MBA from A. S. Patil College of Commerce, MBA Programme,

Bijapur. I am doing survey on “Awareness level of Commodity Market in BIJAPUR

City”. So please spare few minutes of your time to fill up this form. This information is

used only for academic purpose.

Name:__________________________________________________

Address:________________________________________________

Contact No:(Mobile/LL) __________________________________

E-Mail:_________________________________________________

Age

Occupation: ____________________________________________

1) Which among these investment criteria you usually prefer?

Bank Deposits

Real Estate

Stocks

Life Insurance

Gold

Mutual Funds

Bonds

Derivatives market

Others if Specify ________________

2) Are you aware of Commodity Market?


Yes No

3) Are you invested in Commodity market?

Yes No

4) If yes, since how long are you trade with Commodities?

<1 year 1-3 years > 3 years

5) If no, would you like to have knowledge of Commodities market?

Yes No

6) Which among these Commodities are you interested to trade with? How

do you rate them? [Rate 1 for most preferred & 5 for least preferred].

Items Gold Silver Crude Oil Sugar Wheat

Yes/No

Ratings

7) Which factor do you normally see while trading in commodity market?

Price

Season Market Rate Risk Returns Liquidity Safety


8) Which facilities do you expect from service provider of a commodity

trading?

(Give the ratings,1-5,1for high,5for low).


Market Knowledge

Less Brokerage

Comforts

Good service

9) Your valuable suggestions are welcomed.

________________________________________________

________________________________________________

Thank you


Date post:	23-Oct-2014
Category:	Documents
Upload:	anon273814783
View:	104 times
Download:	0 times

Final Geojeet

Documents