Students of commerce, management and other disciplines should familiarise themselves with commodities markets as it will help them stand them in good stead in life, Srikanth Koundinya, a MCX commodity market expert, said here on Tuesday.
He was addressing the students of Gayatri Vidya Parishad PG College here on Tuesday, as part of a three-day lecture series being organised by the BusinessLine Club in the city. The other participating institutions are GITAM Deemed to be University, MVGR College, Samata PG College, Integral Institute of Advanced Management, Vignan Institute of Technology and Sun Institute of Technology and Management.
Mr. Srikanth said commodities market in India is of the size of ₹25,000 crore per day and it is being run in five major commodities exchanges. He then explained about the basics of trading at commodities exchanges, and how commodities contracts are essential for price discovery and price management. “The commodities exchanges provide a real-time electronic trading platform and bring the buyers and the sellers together,” said Mr. Srikanth.
Redressing dispute
He then explained about hedging risks at the exchanges and how they are regulated by the Securities and Exchange Board of India (SEBI). He also spoke about dispute redressal through arbitration. “There are 76 exchanges in the world and the students should refer to those to gather information,” he added.
