..... . VALI disclosures . .....: 23/02/26, The National Commodity and Derivatives Exchange (NCDEX), a leading agri-commodity exchange, last year received approval from the Securities and Exchange Board of India (Sebi) to launch its equity and equity derivatives segments.

Monday, February 23, 2026

23/02/26, The National Commodity and Derivatives Exchange (NCDEX), a leading agri-commodity exchange, last year received approval from the Securities and Exchange Board of India (Sebi) to launch its equity and equity derivatives segments.

Arun Raste, MD & CEO, NCDEX, speaks to Sandip Das on a range of issues related to expanding the bourse's footprint and the impact of the ban on futures trading in several agri-commodities.

Please elaborate on your plan to diversify beyond commodities into equities and equity derivatives.

Over the last two decades, we have established ourselves as India's leading agricultural commodity exchange. We are now expanding into a full-fledged multi-asset platform by entering the mutual funds, equity and equity derivatives segments.

The idea is to connect grassroots savings with regulated investment opportunities and enable a wider cross-section of the population to create wealth.

While stock markets have seen phenomenal growth over the last five years, millions of people remain outside the equity ecosystem. As an agri-commodity exchange, our network and client base are deeply rooted across regions. We see a strong opportunity to bring these participants into the mutual fund and equity fold.

At the same time, we will continue to grow our commodities business through market expansion, new products and additional segments. Investors have recognised this opportunity, and we secured an investment of Rs 770 crore from a diversified group of 61 investors.

Raste on futures trading in commodities

What are your views on the continued extension of the ban on futures trading in commodities, including wheat, chana and mustard, imposed by Sebi since December 2021?

Commodity exchanges encourage investment in electronic negotiable warehouse receipt (e-NWR)-accredited warehouses, improve quality testing and standards, enable transparent pricing, and build stronger market linkages.

Exchanges also support farmers and farmer producer organisations (FPOs) through training, warehousing access, price benchmarks, quality checks and improved bargaining power.

They provide price-risk hedging, transparent price discovery and reliable pricing benchmarks. For FPOs, futures prices serve as clear reference points. The impact of the suspension has extended far beyond trading volumes. Independent studies indicate that the disruption has affected the entire agri ecosystem- farmers, FPOs, traders and related market linkages.

Most importantly, it has weakened trust in a regulated market platform. We believe decisions of this nature should be based on real data and taken after structured consultation with industry stakeholders.

What are your plans for acquiring stakes in commodity exchanges overseas?

We have partnered with the Colombo Stock Exchange (CSE), Sri Lanka's flagship exchange, to help build a comprehensive framework for derivatives and commodities markets. This includes knowledge transfer, technology support, capacity building and inputs into the regulatory framework.

We have jointly proposed the creation of 'CSEDEX'. Under this proposal, NCDEX would hold a 20% stake, subject to regulatory approvals in both countries. It would be the first greenfield partnership of its kind and one of the rare instances of an Indian commodity exchange acquiring a direct stake in an overseas exchange.

The proposed stake will allow us to grow beyond domestic market constraints while contributing to the creation of a new market from the ground up. We are open to exploring similar opportunities.

Raste on agricultural commodity futures exchange

Which new agricultural commodity futures has the exchange launched in recent years, and what are the expansion plans?

We recently launched smart maize contracts with a smaller 10-tonne lot size, making participation easier and more practical for a wider set of stakeholders. The market dynamics of maize are changing due to rising demand from the ethanol sector.

With the government pushing higher ethanol blending in petrol, distilleries are increasingly using maize as feedstock, especially when rice is diverted away from ethanol, making price-risk management tools more relevant than ever. We are also evaluating the relaunch of potato futures this year.

This reassessment is driven by significant improvements in cold storage capacity, warehousing and logistics. In addition, we are examining the feasibility of relaunching pepper futures. Pepper offers a strong opportunity to test how Indian exchanges can influence global pricing in commodities where India has deep production strength.

NCDEX recently signed an MoU with the India Meteorological Department (IMD) to develop India's first weather derivatives using historical and real-time data. What progress has been made so far?

We are in the advanced stages of developing weather derivatives, with final refinements underway following useful inputs from the product advisory committee.

We expect to submit the product for regulatory approval by the end of this month. Over time, weather derivatives are expected to complement crop insurance and traditional hedging tools, becoming a critical building block in strengthening climate resilience across agriculture and allied sectors.

They mark a clear shift- from reactive compensation to proactive risk management.

Report by FinancialExpress

Source: Dailyhunt

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Monday, February 23, 2026

23/02/26, The National Commodity and Derivatives Exchange (NCDEX), a leading agri-commodity exchange, last year received approval from the Securities and Exchange Board of India (Sebi) to launch its equity and equity derivatives segments.

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Today's

23/02/26, Adani Ports share price: Shares of Adani Ports and Special Economic Zone (APSEZ) surged as much as 3.51% to an intraday high of ₹1,564.50 per unit on the National Stock Exchange (NSE) on Monday, February 2023.

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