Four contracts could be to be had for trading from May 26
The National Commodity and Derivatives Exchange (NCDEX) has released futures trading on NCDEX Agridex, an agriculture index that seeks to offer a holistic view on numerous commodities traded on the exchange.

Four contracts expiring in June, July, September and December might be available for buying and selling from May 26.

The go back-primarily based index comprises 10 liquid commodities traded on NCDEX. It has commodity-clever and region-clever flooring and caps, without a single commodity or quarter dominating the index. Agridex has low correlation with other asset instructions and indices. To ensure diversification, no organization of related commodities may additionally constitute over forty in step with cent of the whole weightage in the index.
The rollover in futures agreement may be executed at the preliminary three days of the expiry month and the index might be rebalanced yearly on the first business day of April.

A floor and a cap are enforced upon the weights of each commodity; besides, zone-precise capping is likewise executed based on the aggregated weight of each sector.

NCDEX has partnered with NSE Indices, an index carrier provider, to keep and disseminate real-time NCDEX Agridex values.

Vijay Kumar, Managing Director, NCDEX, stated the Agridex futures contracts will offer investors with some other device for trading and threat control at a composite stage.

Kapil Dev, Head-Business, NCDEX, said Agridex can be the first tradeable commodity index based totally on domestic fees.

Since Agridex Futures Contracts provide a assorted cash settled instrument, it’ll assist in widening participation at the change from both institutional and retail investors, he brought.