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| Local Trading in Association & Exchanges: |
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| Since many years Gold and Silver are traded across the country in all major centre through formation of local bullions dealer, jewllers(soni) by forming and developing various associations, organization and council. Few of the oldest and most active are as below: |
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| Bombay Bullion Association - Mumbai |
| Established |
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In the year 1948 |
| Members |
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More than 500 |
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The Madras Jewellers & Diamond
Merchants Association Chennai |
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| Established |
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In the year 1938 |
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Shree Choksi Mahajan
Ahmedabad |
| Established |
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In the year 1896 |
| Members |
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More than 240 |
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West Bengal Bullion Merchants & Jewellers
Association - Kolkata |
| Established |
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In the year 1951 |
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| Jewellers Association - Ahmedabad |
| Established |
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In the year 1992-93 |
| Members |
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More than 200 |
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Shree Ahmedabad Gold Silver Ornament
Traders Association - Ahmedabad |
| Established |
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In the year 1929 |
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| The Bullion Merchants Association - Delhi |
| Established |
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In the year 1951 |
| Members |
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More than 150 |
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| Shree Rajasthan Sarafa Sangh (Regd.) - Jaipur |
| Established |
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In the year 1955 |
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| Swarna Shilpa Bachao Committee - Kolkata |
| Established |
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In the year 1993 |
| Members |
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More than 1000 |
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The Shree Manekchowk Gold Silver Ornament
Association - Ahmedabad |
| Established |
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In the year 1964 |
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| Gems & Jewellery Trade Council of India - Ahmedabad |
| Established |
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In the year 2003 |
| Members |
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More than 350 |
| President |
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Mr. Shantilal R. Patel |
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| The Delhi Bullion & Jewellers welfare Association - Delhi |
| Established |
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In the year 2003 |
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| Sarafa Traders Committee - Jaipur |
| Established |
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In the year 1950 |
| Members |
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More than 500 |
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| Andhra Pradesh Gold Silver Jewellery & Diamond Merchants Association - Hyderabad |
| Established |
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In the year 1955 |
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| Forwards/futures markets have come a long way since the days of the
"rice tickets" in Japan and the first organised futures marekt in the form
of the Chicago Board of Trade(CBOT) in the US. Forward contracts were the earliest form of commodity derivatives, and futures contracts have existed for centures in one form or the other.
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| In India,the earliest reference to "futures' can be found in Kautilya's Arthashastra, and the trade shot into prominence i the mid-nineteenth century when trading in agricultural commodity futures in the US became organised. After the first recorded instance of futures trading in "rice" in 17th Century Japan, it took off in the US width "grain" contracts on CBOT (the first exchange to start there in 1848). Metals followed suit with contracts traded on the London Metal Exchange (LME) in 1878. Thereafter a number of commodity exchanges facilitating futures trading in numerous agri and non-agri commodities sprang up the world over. |
| In India, organised commodity derivatvies trading began with the Cotton Trade Association's debut in futures in 1875. Cotton Merchants of Bombay took cures form the US and the UK, and to regulate futures trading decade later, Parliament passed the Forward Contracts (Regulation) Act, 1952 (FCRA) to regulate commodity futurestanding in the country.
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| With the Process of liberalisation and globalisation of the Indian economy and consequent reforms in its financial markets in the early 1990s, the Prof. K.N.Kabra-headed committee, set up by the Government in 1993 to examine the role of futures trading, made several recommendations including certain amendments to forward contracts (Regulation) Act 1952 and strengthening of the Forward Markets Commission( FMC). As it is agreed to and acted upon most of these recommendatinos,the Government allowed futures trading in all the commodities recommended. The trade came into beging after remaining in hibernation for nearly four decades, as realization that derivatives do perform a role in risk management dawned. The timing of this revival effort, form the four decades of restrictive government policies, turned out to be spot on, as the 1990s heralded an upswing in teh commodity cycle,globally. FMC and the Government, ona fast-track mode, encouraged the idea of setting up commodity exchanges with state-of-the-eart infrastrucutre and global best practices, and three national-level online exchanges ____ the Multi Commodity Exchange of India Ltd (MCX), the National Commodity and Derivatives Exchange Ltd(NCDEX) and the National Mutli-Commodity Exchange LTd(NMCE) were born.the government in 1918 set up cotton contracts committee, which as soon(1919) replace by cotton Contract Board. Futures trading in oilseeds was organised with the setting up of Gujarati Vyapari Mandali in 1900 in BOmbay. And, over the years, the derivatives market developed in several other commodities in the coungtry: raw jute and jute goods in calcutta(1912),wheat in Hapur(1913) and then bullion in Bombay(1920).However, soon there were wide-spread fears that derivatives trading fuelled unnecessary speculation in essential commodities and was therefore detrimental to healthy functioning of the markets for the underlying commodities and, therefore,to farmers. To Curb speculative activity in the cotton market, the Government of Bomaby barred options trading in cotton in 1939. This was followed, in 1943, by a ban on forward trading in oilseeds and some other commodities sucah as food-grains, spices, vegetable oils, sugar and cloth.
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| As, post-World War II,the Great Depression had its devastating effects on economies around the world during 1939-45 and the British rulers imposed controls over the financial markets, the Indian commodity futures market slipped into virtual extinction. It disintegrated and went into a hibernation, only to continue negligibly in the form of over-the-counter(OTC) contracts. Almost a ban on some commodities in January 2007 and then in May 2008 as wellas imposition of higher margins and stringent norms for trading, the growth in trade volumes slowed down of Rs.40,65,983 crore in 2007-08. Nvertheless, the Indian commodity futures markets staged a comeback in 2008-09 with a sharp increase in the turnover of Rs.52,48,956 corore, not withstanding the ban. As the percentage of Gross Domestic Product (GDP) at Market Prices, the total trade accounted for 97.3% in 2006-07, which only marginally slipped to 94.1% in 2007-08 but shot up to 106.49& in 2008-09. In the current fiscal, for the April 1-August 31, 2009 period, the cumulative value of trade strands at Rs.27,29,248.80 crore, a y-o-y jump of 31%. And a major part of it was due to a sruge in the trade volumes of agricultural commodities futures, which shot up by 53.5% to Rs.405,671.40 crore, followed by the trade in the energy and industrial metals compled, which jumped by 27.5% to Rs.22,89,316.20 Crorer. After Significant declines inthe trade volumnes of agricultural commodites in th previous two consecutive fiscals. i.e. 2007-08 and 2008-09, the rise in agricultural commodities trade in the current year is noteworthy.
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| Today almost 8 commodity exchange have got a national level reach for having the future trading in commodities made available to Indian commodity Market.
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