MCX Facilitates a Study
Tour for Senior Officials of Securities Market Regulator from Nepal
The visit is aimed to understand about the
commodity markets, and the various operational, economic and self-regulatory
aspects linked to successfully operating a commodity exchange
Mumbai, February 15, 2018: A delegation
consisting of senior officials from the Securities Board of Nepal (SEBON) and
Ministry of Law, Justice, and Parliamentary Affairs, Government of Nepal, have
been on a week-long working tour to Mumbai with a visit to Multi Commodity
Exchange of India Ltd. (MCX) as part of their study tour on the functioning of
commodity derivatives market in an effort to set up a regulatory regime and to
launch commodity derivative markets in Nepal. The Government of Nepal has
recently entrusted SEBON with the responsibility of regulating their country’s
commodity derivatives market, and SEBON intends to acquire knowledge about
market structures, products, processes and various regulatory aspects connected
to commodity derivatives during their study tour to India.
As
in many countries in South Asia, Nepal’s economy is also heavily dependent on
production, trade and exports of commodities, especially agricultural
commodities. Agriculture is the main source of GDP, employment, and exports of
the land-locked country, although less than 20 percent of its area is arable.
Through appropriate institutional support for marketing, price discovery and
price risk management for agricultural commodities, which can be achieved by
strengthening the commodity market institutions, the government and its
agencies hope to empower all stakeholders connected to this sector. The study
visit of the delegation is intended to assimilate critical learnings from
India’s experience in creating such institutions and the successes have brought
in.
Mr.
Mrugank Paranjape, Managing Director, MCX, said, “We are glad to
share our knowledge and experience in commodity markets with the dignitaries
from Nepal. The subcontinent’s commodity markets have a lot of potential for
growth and, as we have experienced in the case of several commodities in India,
the derivatives market for commodities is a great enabler in harnessing their
potential for the greatest benefits of their stakeholders. However, to
achieve this, it is important to formulate and execute enabling and robust
guidelines at the regulatory and at the market level. We hope the visiting
dignitaries find their interactions with us, as well as with other
functionaries they are planning to meet during the study tour, useful while
framing such guidelines.”
Mr.
Paristha Nath Poudyal, Executive Director, SEBON said, “It is an
enlightening experience for us to learn about market development and regulation
of commodity markets from MCX, India’s largest commodity exchange and to reap
the synergies between Nepal and India’s commodity sector. We are sure we would
be able to acquire key learning about the nuances of commodity markets, which
would enable us to create the proper regulatory framework for orderly growth
and development of Nepal’s commodity market”.
He
added, “We are indeed thankful to MCX for the opportunity to learn from their
experiences in one of the fastest growing commodity markets in the region, and
also for arranging the close interactions with key persons connected to India’s
commodity markets, in and outside of the exchange, from which we intend to
benefit a lot.”
During
their study tour, the delegation met the physical market traders and member
brokers of MCX. They are also scheduled to interact with the senior officials
from Securities and Exchange Board of India, and Reserve Bank of India.
For
further details, contact:
Shivani
Sharma
Manager
– Media Relations
Mobile:
+91 98333 76243
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