Futures in commodity indices likely by FY20 end, with MCX as first mover

Rival NCDEX is in the process of finalising a partner for indices management.

Futures trading in commodity indices might happen in 2020, probably in the quarter ending March, sources said. At present, only single-commodity futures are permitted on Indian exchanges.
 
Institutional and financial investors prefer indices to hedge their risks, rather than taking positions in single-commodity futures.
 
Edelweiss Equity Research had quoted the top management of the Multi Commodity Exchange (MCX) as telling analysts that they were in the process of preparing their proposal in this regard, likely to be sent to the regulator by the end of September.
 
Currently, there are three indices (composite, bullion and base metal) provided