Why cant zerodha register to NCDEX

EasyMoney · July 16, 2020, 10:04am

When i opened account 4 year ago they said they soon coming with NCDEX 2

EasyMoney · July 16, 2020, 5:39pm

Hello ?

EasyMoney · August 28, 2020, 12:44pm

Prayag · August 28, 2020, 6:23pm

As shared on a different thread, Zerodha has surrendered its membership of NCDEX more than a year back. The same can also be confirmed from NCDEX website

This is a response Nithin had shared on another forum, copying his comments to answer your query:

Most agri-commodities trading happens on NCDEX and not on MCX. We were members on NCDEX, but never started the business and surrendered the membership early this year.

Agri commodities are not only illiquid but most of these commodities are cornered by big traders of the underlying commodity. They are almost like insiders when trading stocks, where SEBI clearly has rules that ban insiders from trading F&O of the stock.

In case of commodities though, all the insiders are allowed to trade claiming to use F&O for hedging.
You can imagine the kind of mayhem they can create if they are in control of the underlying. Over the years there have been mega manipulation with Turmeric, Guar, etc.

The latest one is due to Castor seeds on NCDEX . Many brokerages have lost a lot of money on it, so unlikely anytime soon.

Kiyoto_Kai · July 8, 2024, 4:26pm

Is it perhaps time to reconsider NCDEX? Their volumes seem to have gone up significantly with the more popular products rivalling Midcap stocks in terms of daily turnover.

SEBI also seems to be encouraging NCDEX by making it easier for them to launch new options.