Mumbai, July 23 (UNI) A Workshop focusing on the concept of hedging and how market participants could protect their bottomline through this mechanism got underway here today.
The Institute for Financial Management and Research (IFMR)-NCDEX tie up will go a long way to educate people on the futures market as IFMR being a well known research body would help NCDEX in creating awareness of hedging amongst market participants. R N Rajivan, President, IFMR, said while addressing the workshop, jointly organised by IFMR and National Commodity Derivaties Exchange (NCDEX) along with PJ Commodity Ventures at the IFMR campus.
Rising commodity prices across the globe have resulted in a steep rise in raw material costs to users and processors of raw materials, thereby impacting them with unanticipated loss of income.
This has had a major impact on corporate earnings worldwide, he said.
The workshop aimed at creating a better understanding of the futures market. How the market participants could use the Exchange platform to manage price risk to which they would be exposed to and volatility, associated with commodity prices, were some of the important aspects elucidated at the workshop.
R Ramaseshan, MD&CEO, NCDEX said the objective of this initiative was to spread awareness about the concept of hedging. It is important for market participants to have an understanding about three things i.e. functions of the Exchange, role of members of Exchanges and more importantly how to manage price risk by trading on Exchanges through their members.
Mr Shreekanth Jha, MD, PJ Commodity Ventures said, ''Success in hedging and managing risk can only be determined after it has been tried. It looks like the industry is moving in the right direction by understanding these concepts.'' UNI AR OBB NP1840