NCDEX National Commodity & Derivative Exchange L : issues guidelines to address market cartelization Reinforces best risk management practices

NCDEX issues guidelines to address market cartelization Reinforces best risk management practices Mumbai, January 17, 2017: The National Commodity and Derivatives Exchange Ltd. (NCDEX), India's leading commodity exchange, today issued a financial conduct framework that will contribute directly in making the futures market transparent and less vulnerable to manipulation.

The Exchange guidelines clarify the definition of "persons acting in concert" and the rules for clubbing of open positions. These guidelines will help in preventing circumvention of the stipulated position limit norms by clients/members. Further to several enhancement measures to strengthen risk management and surveillance framework, these guidelines are also designed to curb 'benami' account trading in commodity futures markets. The exchange monitoring and surveillance system will take note of attempts which may appear to compromise market integrity. Stringent penal action, as outlined by the regulator, will be taken on violation of position limits. The new set of principles is a defining initiative for the Indian financial market and is backed by extensive research and consultations with market regulator SEBI.

Samir Shah, Managing Director and CEO, said, "India is in the midst of a structural transformation to clean up the economy and remove the scourge of black money and benami transactions. We are pleased to be able to deliver a set of guidelines that reinforces our commitment to ensure orderly functioning of the markets now and in the future and support the underpinning of the exchange to farmers and hedgers. These guidelines will help futures market participants to have a clear understanding of what constitutes 'acting in concert'. Through a series of well-regarded initiatives and its world-class risk management and surveillance system, NCDEX remains committed to protecting investor interests."

This transparent framework will help members to establish internal processes to ensure strict monitoring of client position limits and enhance the exchange's ability to comply with obligations under PMLA (Prevention of Money Laundering Act). The detailed guidelines are available on www.ncdex.com

NCDEX strongly believes that this package of measures, combined with its ongoing commitment to the physical market and to new services delivered in collaboration with its market partners will ensure the Exchange continues to grow and thrive as the preferred platform for trading in agricultural futures.

About NCDEX:

As India's leading online exchange, NCDEX is where customers repose trust. It offers the widest range of benchmark products across agriculture, metals and precious metals. NCDEX brings buyers and sellers together through its electronic trading platform. With a widely held shareholding, it enjoys the distinction of being the only exchange in the country promoted by national-level institutions. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nation-wide reach, technology and risk management skills.

For further details contact

Shalaka Kagathra - 9820572798 Corporate Communications NCDEX

Mr. Bhuwan Bhaskar-09560473332 Corporate Communications NCDEX