Report On Icex

cccccccccccccccccccccccc c c
ccc c c c c cccccccccccccccccccccccccccc c

c

c
c
c cccccc c cccccc
c

c
c
c This project is not my individual effort. There are many people to whom I
want to thank from the bottom of my heart. There are many who contributed to
best of their efforts for the completion of this project within the stipulated time. No
words can express my gratitude towards them. To begin with, I would like to
convey my regards and loads of thanks to PROF. ARUN SAXENA, FACULTY,
ITM BUSINESS SCHOOL for his guidance and kind support. He has always
been there in the time of need and has always guided me to the right path.
Thanks a lot to you Sir.
I am also thankful to MR. DHARMESH PANDYA, NATIONAL HEAD, ICEX

from the bottom of my heart for his precious time & proper guidance in the
preparation of my project. He has always been very calm and patient while
answering thousands of my queries. Thank a lot to you sir.
I would also like to thank two more people MR. PIYUSH AND MR.
SHUBHODEEP for providing their helping hands in the most crucial stages of
the project and answering all the queries with patience. I cannot thank both of
you enough for your co-operation and support.
Finally, I would like to thank my family & friends who has always been there in
the time of need and in all my frustration periods during the preparation of the
report. Thank youcfor your cooperation in completion & submission of the project.
c
c cccccc c cccccc
c

c c
Every business organization big or small has its own set of problems. Sometimes
they enjoy advantages over others. Sometimes they also have to bear the heat of
the competition. They are not above the ups and downs of the business.
ICEX being a very new exchange in the Indian market dominated by leaders like
MCX, NCDEX is facing a lot of challenge in spite of having a lot of offers and
value added services for its customers. Being no. 1 in the trade volumes for gold
the number of memberships is not increasing creating worries for the top
management. So as a summer trainee a combined project was allotted to me
catering to a lot of problems.
The purpose of the project was to study INDIAN COMMODITY MARKET on the
following parameters:-
c c c
c c c c Gold
is primarily a monetary asset and partly a commodity. Gold is the world's
oldest international currency. It is an important element of global monetary
reserves. Central banks, and official international institutions, have been
major holders of gold for more than 100 years and are expected to retain
large stocks in future.
ccc
c cc c

cc
c This part helped in understanding the market share
of different exchanges that deal in Indian markets. Also it revealed out that
what are the major factors that are helping these exchanges to cater to the
needs of more and more customers.
c c c c

c
ccc
cc c cc c c
In the history when most of the work was carried in the spot
markets, online exchanges/markets were a real innovation which helped
people to trade in bullions from their home.
c
c cccccc c cccccc
cc cc c cc ccc

c cc cc cc c India is
arguably the largest bullion market in the world. It has been until now, the
undisputed single-largest Gold bullion consumer, with its own final
demand outweighing the next largest market ± China by almost 57
percent.
c c c c c c c

c c
c c c c c c c c c c c
c India imports around 500-800 tonnes of gold on an average
every year. In 2008, India¶s gold imports dipped by 45 per cent to touch
450 tons. However, buying of gold ornaments has fallen sharply.
To study the awareness level of ICEX in minds of consumer and how do

consumers perceive ICEX on the basis of transparency, accountability,
pricing policies and value added services.
To assist business development team in achieving their sales targets and

also in their latest MARCOMM project all over Mumbai for spreading
awareness about ICEX and bullion trading.
c
c cccccc c cccccc
c

cc

c
S.NO. TOPIC PAGE NO.
1 INTRODUCTION TO INDIABULLS 6
2 INDIABULLS MARKET SHARE 9
3 INDIAN COMMODITY EXCHANGE 10
4 INDIAN COMMODITY MARKET 14
5 COMMODITY PROFILE - GOLD 19
6 INTERNATIONAL SENARIO 21
7 DOMESTIC SENARIO 27
8 LEARNINGS 33
9 PEST ANALYSSIS OF GOLD 34
10 SWOT ANALYSIS 35
11 PORTERS¶ FIVE FORCE MODEL 37
12 RECOMMENDATIONS 40
13 ASSIGNMENT NO 2 - MARCOMM 42
PROJECT : AN AWARENESS
CAMPAIGN
14 LEARNINGS AND RECOMMENDATIONS 46
15 ASSIGNMENT NO 3 ± WEBSITE 47
COMPARISION
16 CONCLUSION 50
17 RECOMMENDATIONS 51
17 ASSIGNMENT NO 4 ± MARKET SURVEY 52
: A CONSUMER BEHAVIOUR STUDY
18 BIBLIOGRAPHY 56
c
c
c
c cccccc c cccccc
c

c
c c
Indiabulls Group is one of the top business houses in the country with business
interests in Real Estate, Infrastructure, Financial Services and Power sectors.
Indiabulls Group companies are listed in Indian and overseas financial markets.
The Net worth of the Group exceeds USD 3 billion. India bulls has been
conferred the status of a ³Business Super brand´ by The Brand Council, Super
brandsIndia.
Indiabulls Financial Services is an integrated financial services powerhouse

providing Consumer Finance, Housing Finance, Commercial Loans, Life
Insurance, Asset Management and Advisory services. Indiabulls Financial
Services Ltd is amongst 68 companies constituting MSCI - Morgan Stanley India
Index. Indiabulls Financial is also part of CLSA¶s model portfolio of 30 Best
Companies in Asia. Indiabulls Financial Services in partnership with MMTC
Limited, the largest commodity trading company in India, has set up India¶s 4th
Multi-Commodities Exchange.
Philosophy:cc
Indiabulls has created a unique organization that is designed for you ± the c
c !. it passionately believe in the Smart Investor who wants to make his
own educated investment choices and demands world class access to a full
range of services and products ranging from Equities to Insurance, combined
with the highest level of integrity, service and professionalism.
Indiabulls is a full service investment firm offering clients access to a tremendous

range of financial services from 135 locations across 95 cities. We have a strong
team of over 1000 Client Relationship Managers focused on serving customers
unique needs. Our world class infrastructure, built with tens of crores of
investment, provides our clients with real-time service, multi-channel & 24/7
c
c cccccc c cccccc
access to all information and products. As we've expanded and developed to

serve the needs of all kinds of investors, we've been guided by one underlying
Philosophy: "c# c$%&c
iabullsc1 2 c
We are proud to introduce to you iabullsc Professioalc etwork

c that
offers real-time prices, equity analysis, detailed data and news, intelligent
analytics, and electronic trading capabilities, right at your finger-tips. This
powerful technology is complemented by our knowledgeable and customer
focused Relationship Managers who are available to help with your financial
planning and investment needs.
boutcouers:cc
The fast paced growth, diversification and consolidation of the Group has been
possible due to the vision and leadership of the cofounders of Indiabulls.
ameerc ehlautc is the Chairman, CEO and Whole Time Director of Indiabulls.
Sameer is an engineer from
celhiccand has worked internationally with
alliburtoc in its international services business in 1995. He has utilized his
experience with the international best practices and professional work culture at
Halliburton to lead Indiabulls successfully.
ajivcattacis the President, CFO and Whole Time Director of Indiabulls. Rajiv
is an engineer from
c elhic c and has rich experience in the oil industry,
having worked extensively across the globe in highly responsible assignments
with hlumberger. Rajiv has managed remote exploration projects providing
evaluation services for different clients in India as well as abroad.
c
c cccccc c cccccc
c
aurabhc ittalc is a Director at Indiabulls. Declared the best graduating student

in
celhicic, Saurabh was also one of the engineers selected by
hlumbergercto work for its international services business in 1995 and gained
experience of working in various global locations. He graduated as a Baker
Scholar with an MBA from the arvarc usiessc hool. He has also
developed in-depth understanding of international financial markets.
c
c cccccc c cccccc
c
cccccccccccccc
c

O O

O

The commodities futures market in India is only about 3 times the size of physical
market, whereas it is more than 10 times the size of physical market in other
developed countries. Therefore, the current state of commodities market in India
leaves lot of scope for growth in terms of depth and reach of the market as well
as attracting new players who are utilizing the services of overseas commodities
market due to various reasons like lack of depth in product category they wish to
trade in; inadequate warehousing facilities at strategic locations, etc.
c
c cccccc c cccccc
c
c
c c
c c
It is a screen based on-line derivatives exchange for commodities and has

established a reliable, time tested, and a transparent trading platform. It is also in
the process of putting in place robust assaying and warehousing facilities in order
to facilitate deliveries. It is jointly promoted by Indiabulls Financial Services Ltd
and MMTC Limited, and will have Indian Potash Ltd among others, as partners.
This exchange is ideally positioned to tap the huge scope for increasing the
depth and size of commodities' market and fill in the structural gaps existing in
the Indian market. Our head office is located in North India (Gurgaon), one of the
key regions in India's Agri belt, with a vision to encourage participation of
farmers, traders and actual users to hedge their positions against the wild price
fluctuations.
orporatecvisioc
Provide fair, transparent and efficient trading platform to all participants
Meet the international benchmarks for the Indian commodity market
Provide equal opportunity and access to investors all over the country through
the modern communication modes
Attract a wide array of end users, financial intermediaries and

hedgers
Become a major trading hub for most of the commodities
To provide product portfolio to suit the trading community needs in an

efficient manner .
c
c cccccc c cccccc
We will provide the widest range of benchmark future products available on

any exchange, overing all major commodities. Our collective vision is global
growth, innovative product development, continually enhanced echnology and
the highest level of service available on any exchange. We offer future trading in
Agricultural commodities, bullions, base metals, and energy.
Our objective is to serve customers with a global product line,

virtuallyround-the-clock electronic trading and strategic alliances with other
leading players. We also offer a number of programs and products
designed specifically to appeal to a global audience.
eycifferetiatorsc
º Joint venture between Public/Private entities Well capitalized Rs. 100 Cr

initial capital Reputation of partners and pan India presence
º Key stake holders having rich experience in the domain viz. commodities,
warehousing, financial markets
º Professionally driven exchange with an entrepreneurial mindset
º Aim to remove discrepancy in the commodities market by building

transparency in the exchange
º Unprecedented price transparency and market depth
c
c
c
c
c
c
c cccccc c cccccc
c
c

c t, a Government of India enterprise, is the largest international trading
company of India having annual turnover of more than US$ 7Billion or Rs. 36000
Crore. It is among the leading international trading company of South Asia having
experience of more than 45 years in bulk trading of diverse commodities and
products. It is present in 56 locations in India through offices, warehouses, port
offices & retail outlets. It is the largest exporter of Minerals and single largest
importer/supplier or Bullion & Non-Ferrous Metals in India. MMTC is also leading
in trading of Agro products Fertilizers, Coal & Hydrocarbons textiles, chemicals
etc. MMTC Ltd has a fully owned subsidiary, MTPL in Singapore and also a
promoter of NINL in Orissa, an Iron & Steel plant MMTC Limited, and India¶s first
Super Star Trading House, continues to be the country's leader in mineral
exports for four decades now. During the last decade, MMTC could
withstand the stiff competition in the world market by its continuous and
persistent efforts in diversifying its markets, enlarging its product range,
expanding extensively its infrastructure facilities and expertise in mineral
operations, and by attaching utmost care and importance to its trade
commitments as also the quality of service and products.
MMTC has provided further fillip to value addition to minerals. The 1.1 million ton
Steel Plant consumes about 2 million tons of various types of minerals annually
being supplied by MMTC. The company has also taken an initiative to link import
of capital equipments required for modernizing mining activities in the country to
promote export of minerals. The import of the earthmoving equipments was
linked to export of Iron Ore under EPCG scheme.
c
c cccccc c cccccc
c
temscofctraecc
IRON ORE
MANGANESE ORE
CHROME ORE
OTHERS
(Mud Chemicals, Barytes, Bentonite, Bauxite, Talc, Gypsum, Feldspar,
Quartz/Silica Sand, Garnet Sand, Kaolin (China Clay), Vermiculite)
estiatiocofcexportsc
MMTC exports Iron ore to Japan, South Korea, China, Middle East etc. The
export is both on the basis of long term and annual spot contracts.
eaercicmieralcexportsc
MMTC's performance in mineral trade has been acknowledged by the CAPEXIL
(Chemicals and Allied Products Export Promotion Council) by conferring the
nation's highest award for excellence in mineral exports 13th time in succession.
oecofcsales
MMTC's mineral sales are on FOB basis only.
c
c cccccc c cccccc
c
c
c
India commodity market consists of both the retail and the wholesale market in
the country. The commodity market in India facilitates multi commodity exchange
within and outside the country based on requirements. Commodity trading is one
facility that investors can explore for investing their money. The India Commodity
market has undergone lots of changes due to the changing global economic
scenario; thus throwing up many opportunities in the process. Demand for
commodities both in the domestic and global market is estimated to grow by four
times than the demand currently is by the next five years.
ommoityc
raigc
Commodity trading is an interesting option for those who wish to diversify from
the traditional options like shares, bonds and portfolios. The Government has
made almost all commodities entitled for futures trading. Three multi commodity
exchanges have been set up in the country to facilitate this for the retail
investors. The four national exchanges in India are:c
º Multi Commodity Exchange (MCX)

º National Commodity and Derivatives Exchange (NCDEX)
º Indian Commodity Exchange (ICEX)
º National Multi-Commodity Exchange (NMCE)
Commodity trading in India is still at its early days and thus requires an
aggressive growth plan with innovative ideas. Liberal policies in commodity
trading will definitely boost the commodity trading. The commodities and future
market in the country is regulated by Forward Markets commission (FMC).
c
c cccccc c cccccc
c
holesalec arketc
The wholesale market in India, an important component of the India commodity

market, traditionally dealt with framers and manufacturers of goods. However, in
the present scenario, their roles have changed to a large extent due to the
enormous growth that the economy has witnessed. The lengthy process of
wholesalers buying from manufacturers; then selling it to retailers who in turn
sold it to consumers does not seem feasible today. An improvement in the
transport facility has made the interaction between the retailer and manufacturer
easier; the need for a wholesale market is gradually diminishing. c
etailc arketc
The retail market in India is currently witnessing a boom. The growth in the India
commodity market is largely attributed to this boom in the retail market. Policy
reforms and liberal government policies have ensured that this sector is growing
at a good pace. Some of the reasons attributed to the growth of retail sector in
India include the large population of the country who has an increased
purchasing power in their hand. Another factor is the heavy inflow of foreign
direct investment in this sector. More than 80% of the retail industry in the
country is concentrated in large cities.
c
c cccccc c cccccc
c
iac ommoityc arketclobalc eario
Despite having a robust economy, India's share in the global commodity market
is not as big as estimated. Except gold the share in other sectors of the
commodity market is not very significant. India accounts for 3% of the global oil
demands and 2% of global copper demands. In agriculture India's contribution to
international trade volume is rather less compared to the huge production base
available. Various infrastructure development projects that are being undertaken
in India are being seen as a key growth driver in the coming days. c
iacullioc arketc
The bullion reserve of a country is the indicator of the amount of wealth a country
possesses. Bullion is defined as a bulk quantity of precious metals consisting of
gold, silver and others that can be assessed by weight and cast as a lump.
Bullion is valued by its purity and mass rather than its face value which is
applicable in the case of money. India Bullion Market is a recognizable index that
highlights the economic growth of the nation.
ulliocPur hasecacorex
In 2009, the government of India purchased 200 metric ton of gold from the
International Monetary Fund (IMF) at $6.7 billion. This purchase has propelled
the India Bullion Market to the tenth position among the top global gold holders.
This purchase signals that the economy of the country has come full circle and is
also a way of spreading its assets. The current foreign exchange or forex reserve
of India is nearly $285 billion. The share of foreign currency in the forex is $268.3
billion, followed by gold at $10.3 billion, IMFs special drawing rights accounts for
$5.2 billion while the reserve position in the IMF accounts for $1.59 billion.c
c
c cccccc c cccccc
c
ulliociciac
Trading of gold is known as bullion trading. India is the leading consumer and
importer of gold in the world. Due to this, the potential of the India bullion market
is very promising. Owing to the weak price of Dollar in the global market, the
price of bullion is soaring. The gem and jewelry industry of India is one of the
fastest growing sectors of the economy at an approximate rate of 15%. The India
Bullion market is under the strict supervision of the Government as bullion is one
of the major indicators of the wealth of the country.
India is the largest investor in gold jewelry as a large number of people believe
that investing in gold is beneficial. The domestic consumption of gold depends on
factors like the wedding season, festive season, the performance of the harvest
and the monsoon of the country. c
outry ulliocictos
United States 8133.5
France 2445.1
Germany 3408.5
Italy 2451.8
Netherlands 612.5
Switzerland 1041.5
ECB 501.4
India 557.7
Russia 568.4
Japan 765.2
China 1054.0
c
c cccccc c cccccc
c
iacullioc arketcsso iatioc
IBMA or the Indian Bullion Market Association is a national level body that
represents the Indian Bullion Trade and Industry. This body is an association of
all leading bullion dealers and jewelry merchants who have tied up with the
National Spot Exchange Limited. The idea of this association is to promote a
professional organizational dedication towards the development and growth of
the bullion industry in India. c
Problemscofctheculliocustryc
There are a number of restrictions imposed on the import and export of gold as
compared to any other commodities. The bullion market of the country is very
fragmented and unorganized. The price of bullion varies very much in different
parts of the country. The main reason for this is the lack of a benchmark that is
valid throughout the country. c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c cccccc c cccccc
c
c

c!cc
c

cPcc
Gold is primarily a monetary asset and partly a commodity. Gold is the world's
oldest international currency. It is an important element of global monetary
reserves. Central banks, and official international institutions, have been major
holders of gold for more than 100 years and are expected to retain large stocks
in future.
Gold has maintained its purchasing power throughout its 5,000-year track record,
as the world¶s only monetary metal. It is considered as a commodity as it can be
acquired and stored in the form of Jewellery, Bars, Coins and Gold Deposits. It is
also called precious metal, which means it does not rust (oxidise) at normal
conditions. It is resistant against many acids and a good electric conductor,
which makes it useful for electronic circuits. It is useful for jewelry because of its
inertness.
mporta ecac ses

Gold has mainly three types of uses: Jewellery Demand, Investment Demand
and Industrial uses.
c
"ewellerycema- Jewellery consistently accounts for around three-quarters of
goldcdemand. In terms of retail value, the USA is the largest market for gold
jewellery, whereas India is the largest consumer in volume terms, accounting for
25% of demand in 2007.
c
c cccccc c cccccc
c
vestmetc ema- Investment demand in gold has increased considerably in
recentc years. Since 2003, investment has representing the strongest source of
growth in demand, with an increase in value terms to the end of 2007 of around
280%.
The value of gold is a result of its rareness and also of its interesting physical
characteristics.
Pure gold is too soft for ordinary use and is typically hardened by alloying with
copper or other base metals. The gold content of gold alloys is measured in
carats (k), pure gold being designated as 24k.
Gold market is highly liquid and gold held by Central Banks, other major
institutions and retail jewellers keep coming back to the market.
Due to large stocks of gold as against its demand, it is argued that the core driver
of the real price of gold is stock equilibrium rather than flow equilibrium.
It is effective portfolio diversifier, which summarizes the usefulness of gold in

terms of modern portfolio management.
Gold is effective diversifier during economic stress periods or instability.
Over 60 countries including South Africa, US, Australia and Russia mine gold.
Although gold mining industry is enjoying higher prices in recent years, they
suffer because of higher input costs. Global mining output is also declining as
quality and easily accessible ore has been mined at most of producing countries.
c
c cccccc c cccccc

c
South Africa, the United States and Australia are the three largest gold producing
countries. Other major producers are Canada, China, Indonesia, and Russia. But if we
measure only the current year¶s production, China has become the world¶s largest
producer of gold, overtaking South Africa¶s top position in 2007.
As gold has been considered as a proxy currency, its reserves are held by
Governments i.e., Central Banks/ institutions of various countries. The survey carried
out in 2005 revealed that US, Germany, France, Italy, Switzerland, Netherlands, Japan,
Portugal, Spain and China were the countries where official gold holdings stood over
500 tons.
orlcolcemac#cupply

ablec:colcupplycacemacala ecictoes
iec
ear Prou tio
otalcsupply
otalcema
2006 2486 3574 3409

2007 2473 3488 3526
2008 2407 3468 3659
c
our e: GFMS
c
c cccccc c cccccc
Global demand ruling higher compared with supply (including mine output and old
gold scrap) in recent years and as a result the market has witnessed price
escalation. According to World Gold Council, gold mine production has declined to
2407 tons in 2008 compared with 2486 and 2473 tons in 2006 and 2007
respectively. The total gold supply including old gold scrap has been declining and
stood at 3468 tonnes in 2008 as compared to previous year¶s gold supply of 3488
tonnes.
orlcolcupply
iecprou tio
Gold is produced from mines on every continent except Antarctica, where mining is
forbidden. According to data of year 2007, there are around 400 operating gold mines
worldwide. Depending on the geologic situation, the mining is very different. However,
the overall level of global mine production is relatively stable, averaging approximately
2,525 tonnes per year over the last five years.
The most important gold producer of the world is South Africa. The mines in South
Africa can provide several superlatives. The Kruger Rand gold coins are world
famous.
º The East Rand Mine is the world's deepest mine, 3585 m below surface.
º The Free Gold Mine was the world's most productive gold mine with the
output of 115 tons per year.
º Driefontein Consolidated Mine has produced more gold than any other gold
mine, about 2292 tons.
c
c cccccc c cccccc
º Deepest single-drop mining shaft in the world has been sunk at South Deep
Gold Mine.
c
rap
However, although gold mine production is relatively inelastic, recycled gold (or scrap)
ensures there is easily traded supply when needed, and this helps to stabilise the gold
price. Between 2003 and 2007, recycled gold contributed an average 26% to annual
supply flows.
etralcaks
Central banks and supranational organisations (such as the International Monetary
Fund) currently hold gold as reserve assets amounting to around 29,000 tonnes,
dispersed across 110 organisations. On average, governments hold around 10% of
their official reserves as gold. However, the proportion varies country-by-country.
Although a number of central banks have increased their gold reserves in the past
decade, the sector as a whole has been a net seller since 1989, contributing an average
of 520 tonnes to annual supply flows in 2003-2007. Net central bank sales amounted to
just 486 tonnes in 2007 and it decreased to 279 tonnes in 2008. China, United States,
South Africa and Australia were the major producers of gold in 2008. These countries
contributed over 40% of the total global mine production.
c
c
c
c
c
c
c
c
c cccccc c cccccc
c
orlcolcema
Demand for gold is widely spread around the world. East Asia, the Indian sub-continent
and the Middle East accounted for 72% of world demand in 2007. 55% of demand is
attributable to just five countries - India, Italy, Turkey, USA and China. Gold demand
mainly comes from Jewellery consumption, Industrial and investment uses.
c
"ewellerycema
Jewellery consistently accounts for around three-quarters of gold demand. In the
12 months to December 2007, this amounted to US$54 billion, making jewellery one of
the world's largest categories of consumer goods. In terms of retail value, the USA is
the largest market for gold jewellery, whereas India is the largest consumer in volume
terms, accounting for 25% of demand in 2007.
vestmetcema
Investment demand in gold has increased considerably in recent years. Since 2003,
investment has representing the strongest source of growth in demand, with an
increase in value terms to the end of 2007 of around 280%. Investment attracted net
inflows of approximately $15bn in 2007.
ustrialcema
Industrial and dental uses account for around 13% of gold demand (an annual average
of over 425 tonnes from 2003 to 2007 inclusive).
East Asia, the Indian sub-continent and the Middle East accounted for 72% of world
demand in 2007. 55% of demand is attributable to just five countries - India, Italy,
Turkey, USA and China. India is the world¶s largest gold consumer, followed by China.
Demand for gold, including jewellery, industrial, and investment demand has broadened
in recent years. In China, which has overtaken the US as the second largest retail
c
c cccccc c cccccc
market, jewellery demand ruled strong in 2007. In 2007, the total demand has
overtaken the total supply.
orlcolc arkets
London: London Bullion Market Association (LBMA). It is world¶s biggest market major
clearing house of gold.
New York: New York Mercantile Exchange Commex Division (NYMEX) begins
trading on 31st December 1974. It is mainly considered as ³home of uturesctraig´!c
Zurich: It is also one of the major spot and future market in Europe mainly known as a
³Physical Turntable´.
Istanbul: Istanbul Gold Exchange begins trading on 26th July 1995. Major gold spot and
futures market are in Turkey and Middle East.
Dubai: Dubai Gold & Commodities Exchange (DGCX) begins trading in June 2005.
Major spot gold market for Saudi and gulf countries. It is also one of the famous
jewelers market.
Singapore: It is doorway to South East Asian consuming countries major spot and future
market.
Hong Kong: It is doorway to China, now one of the major gold consuming country in the
world.
Tokyo: Tokyo Commodities Exchange (TOCOM) begins trading on 23rd March 1982,
major spot and future market in Japan.
c
c cccccc c cccccc
Shanghai: began trading on 26th July 1995. It is one of the major future centers in
China.
Turkey has become an important net exporter. Vietnam, usually a large buyer; and
Thailand are also exporting gold now.
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c cccccc c cccccc
c

c
India is arguably the largest bullion market in the world. It has been until now, the
undisputed single-largest Gold bullion consumer, with its own final demand outweighing
the next largest market ± China by almost 57 percent. But it seems now, that the
Chinese Gold buyers have caught up during 2008 as Chinese demand is surging rapidly
(up by 15 percent year-on-year). Indian demand fell as Indian Gold sales collapsed by
about 65 percent in the year 2008. In spite of being the largest consumer of gold, India
plays no major role globally in influencing this precious metal's pricing, output or quality
issues.
India¶s total gold holdings are between 10,000 tonnes and 15,000 tonnes of which the
Reserve Bank of India has only around 400 tonnes. India has the largest number of gold
Jewellery shops in the world.
Prou tiocofcgolcicia
º Gold holdings in India are estimated to be in the range of 10000-13000 tonnes

and are predominantly private.
º India¶s gold consumption is 25% of world¶s total gold production.
º India has a very limited gold production of around 9 tonnes in 2002The domestic
production of the gold is very limited which is around 9 tonnes in 2002 including
2.940 tonnes from mines and 6.203 tonnes from Birla Copper
º More than 60% of Indian consumption is met through imports
º The availability of recycled Gold is price sensitive and the fabricated old Gold
scraps is price elastic and was estimated to be near 450 tonnes in 2002 rose
almost more than 40%.
c
c cccccc c cccccc
c
olcProu tiocicia

ablec$:cProu tiocicre etcyearscictos:
tate 20006 200607 200708*
Karnataka 2.846 2.334 2.831
Jharkhand 0.201 0.154 0.027
Gujarat (by-product) 6.710 10.335 9.135

otal !77 2!82$ !$
* p- provisional
As given in the above table, gold production in India is ruling lower in recent years.
Karnataka was the leading producer of this precious metal with the output ranging from
2 to 3 tons per annum during 2005-06 and 2007-08. Jharkhand also produces small
quantity of gold.
c
c
c
c
c
c cccccc c cccccc
c
olcemacicia
Gold, the ultimate safe haven in troubled times, remained the hot commodity throughout
the year. It scaled new heights in the global markets and in India, which is the largest
buyer of the metal.

ablec:colcemaciciacvscorlc
oes
%charecof
ear ia orl
orlcema
200 617.7 2961.5 20.86

200 721.6 3091.9 23.34
2006 721.9 2681.9 26.92
2007 769.2 2810.9 27.36
2008p 660.2 2906.8 22.71
Source: GFMS * provisional

Indian demand for Gold accounts for on an avg. 25% share of world gold demand. In
2008, demand for gold has decreased in India because of high price amid global
financial crisis.
olcmportscicia
India imports around 500-800 tonnes of gold on an average every year. In 2008, India¶s
gold imports dipped by 45 per cent to touch 450 tons. However, buying of gold
Jewellery has fallen sharply in January, February & March month of the year 2009,
leading to a slump in the yellow metal¶s imports.
c
c cccccc c cccccc
c
c
olcPri es
There are many factors, which affect the gold prices in domestic as well as international
market. However, it is highly correlated with the US dollar, the world's main trading
currency. Gold has long been regarded by investors as a good protection against
depreciation in a currency's value, both internally (i.e. against inflation) and externally
(against other currencies). Gold is widely considered to be a particularly effective hedge
against fluctuations in the US dollar, the world's main trading currency.
The gold price has been found to be negatively correlated with the US dollar and this
relationship appeared to be consistent over time. It is a consistently good protection
against the economic instability and the exchange rate fluctuations.
Gold prices are skyrocketing over the years both in the national and international
markets. However, the price increase in the national market was significant during the
current year as average price (till end of Aug ¶09) ruled at about Rs.14600 per 10 grams
compared with the annual average of Rs.12,670 per 10 grams in 2008. With this, the
market has witnessed price appreciation of about 15% compared with merely 5%
international market for the same period, which could be mainly linked to the currency
factor.
a torsciflue igcolcPri es
º World macro economic factors including US Dollar, interest rate and so on
º Global gold mine production
º Demand by Central banks
º Domestic demand, which is linked to agricultural prosperity and
c
c cccccc c cccccc
Festivals/marriages etc
º Producer / miner hedging interest
º Comparative returns on stock markets
º US dollar movement against other currencies
º Indian rupee movement against the US dollar
º Geopolitical tensions
º Global economic situation
c
c cccccc c cccccc
c
After having a deep insight about gold as an investment in India as well as international
markets, I came to following conclusion:
1) Gold is an important commodity for every nation as it is mandatory by the world

gold council to maintain certain amount of gold reserves as the nation¶s wealth.
2) Also gold is a commodity that is appreciating tremendously in the past few years,
hence investing in gold is profitable as it acts as a hedge over the fluctuating
currency.
3) Another important learning is that in whole of the history this is for the first time
that U.S. dollar and gold is appreciating simultaneously. The reason behind this
is the European economic collapse.
4) Also interest rates and exchange rates fixed by RBI play a very important role in
shooting up of the gold prices. If the interest rates and exchange rates are high
then more number of people will invest in gold and gold products and vice-versa.
5) Another important factor that is important for the rise in demand of gold is the
prosperity of agricultural sector in India. Since government of India is
continuously concentrating on the agricultural sector of India hence demand of
gold has been increasing day by day in India helping the nation to become leader
in consumption of gold around the globe.
c
c cccccc c cccccc
c
P
ccccc
cc
ccc
c
!"#$#%&" %!)!.#%&"
' (&)*#)*c ' ,%!)!.#%c/$&4#"#$5
*!+,-).,)$/ ' #)$,-,/$c-&$,/c&)1c
' %(&)*,c#)c c ,6%(&)*,c-&$,/
0!"#%#,/ ' #)3"&$#!)
' -&1#)*c0!"#%#,/
' 2&-/c&)1c%!)3"#%$
!%#&" ,%()!"!*#%&"
' "#3,/$5", ' 4,$$,-c#))!+&$#!)c
' 1,.!*-&0(#,/ !)"#),c$-&1#)*
' %!)/7.,-c&$$#$71,c ' $-&)/0&-,)%5c 0-#%,c
&)1c!0#)#!) 3,,1/
c
c cccccc c cccccc
c

cc
tregths:c
º Well established Brand Name
º Pan India reach through established equity terminals
º First Public Private commodity exchange
º Efficient delivery mechanism through accredited warehouses
º Collaboration with BBA biggest bullion association
eakess:c
º Late arrival in the market
º Staff not well trained
º Spread is not narrow
º No proper marketing strategies
pportuities:c
º Vast potential in market
º More product in product portfolio
º In future players like mutual funds can invest in commodity market
º In future they can be their own clearing house
c
c cccccc c cccccc
c
hreats:c
º Big Players like MCX and NCDEX are major threat
º Macro environment factor
º Upcoming exchanges are another threat to the security of ICEX.
c
c cccccc c cccccc
argaiigc
Powercfc
ustomers
om etitivec

hreatcfcewc
ivalrycithic
trats
custry
Portercivec
or esc
oel

hreatcfc
argaiigcPowerc
ubstitutec
fcu liers
Prou ts
P
c cc
c
c cccccc c cccccc
hreatcofcewctratsc
This is one of the fundamental force which describes the behavior of the players in this
commodity industry. There are many features which describes the threat to new
entrants in this industry. c
Any customer of an exchange has faith and trust upon the exchange and transparency
is also important. Therefore any new exchange has to build up its name in the industry
to attract the customers.
hreatcofcsubstitutesc
There are some substitutes to commodity exchanges in the form of stock market and
mutual funds and other form of investments. The relative price is among different
exchanges also matters as the customer pays a certain percentage of every transaction
to the exchange. Therefore as MCX charges Rs. 7 per transaction ICEX charges only
Rs. 1 per transaction.
argaiigcpowercofcsuppliersc
The suppliers of exchanges are the vault owners, security agencies and various
information agencies and clearing houses.
The number of suppliers of exchange is limited and have specialized skills and work
which is indispensable. Therefore they have some bargaining power against the
exchange which goes in their benefit.
argaiigcpowercofcbuyersc
The bargaining power of buyers i.e. the traders or members is also very important in this
case.
The products or commodity contracts are standardized as per FMC guidelines.

Therefore there is no customization as per the exchange memberships are concerned.
c
c cccccc c cccccc
This works in favour of the exchanges and thus the customers don¶t have much
bargaining power.
tesitycofcrivalryc
The intensity of rivalry or competition is also important as the strategies and tactics of
the exchanges are also based on this. The market has five major national players ±
MCX, NCDEX, NMCE and ICEX. Therefore it has an oligopolistic framework.
c
c cccccc c cccccc
c
c
c
c
After a long journey with ICEX certain recommendations that can help them generate
some business are as follows:-
º
heyc acbectheircowc learigchouse: - Since ICEX has a tie up with
they are not able to generate more business from their customers and
also they can¶t give their customers a benefit over clearing and settlement.
Hence they can have their in-house clearing house.
º
heyc acacmorecprou tscicportfolio:c The product portfolio of
ICEX is very small and is focused mainly on gold. Hence the customer base of
ICEX is very small. So they should try to increase their products.
º orecfo usecmarketigcstrategies:c ICEX can work upon its marketing
strategies to increase the customer base and increase volumes over trade. Their
marketing strategies can include:
Free memberships
Large discounts on trading on special days.
Privileges to customers who trade on ICEX over a specific amount of
volumes.
º cmorecasso iatiosclikecctoctheirc lietal:c Since there is
only one association in their cliental that is generating business for ICEX so it
should try to capture more of such organizations that can help it generate more
business. One such step was the MARCOMM PROJECT initiated by ICEX to
generate awareness about ICEX and commodity trading in other jewellery
associations in Mumbai.
º Properctraiigctocstaffctochalecfia ialc&ueriescshoulcbec
give:c More staff training is necessary for improving efficiency of the
business. Generally the sales people are not
c
c cccccc c cccccc
completely aware about the terms and conditions of the business and so they
create a wrong impression about the company in the minds of consumers.
c
c cccccc c cccccc
c

c!2c
cP"
c
c
c cc
!c cPc

cc
c
c
"
: To spread awareness about ICEX to increase customer base and volumes of
trade.

: The project was initiated by the Business Development team of Indian
Commodity Exchange under the leadership of Mr. Dharmesh Pandya (Business Head, ICEX).
The methodology of the project was: -
1) Target various jewelers associations in Mumbai which do not trade in commodity

markets.
2) Then visiting those associations and find out who the president of the association is.
3) Fixing meeting with the president and telling them what the agenda of the meeting is.
4) Discussing the benefits of the commodity trading with the president.
5) Asking the president to conduct a small event in which the members of the association
and the people from ICEX would sit together and discuss the various issues about ICEX
and how they can make full use of ICEX to spread the awareness about ICEX and the
benefits of commodity trading.
6) Finalizing the various details about the event like location, budget, number of the
members who will be a part of the event.
c
c cccccc c cccccc
c
hecvariouscasso iatioscthatcwerec apturecwere:cc

c
c c
: This association was established in 1948. The
association consists of three departments viz. The office deptt, the refinery department,
the assay department. The office is headed by the chartered accounted as its secretary
and other staff. It maintains the record of gold and silver imported, stocks of bullion
(gold and silver) held in the country. It was conducting forward trading in the past and
has now applied to the central government for permission to conduct futures trading in
gold and silver.
ire tor:c r!cureshc!cyuiacc
'schyuiacexportscc0croomco!c$cshahiclaecc
! !cstreetc umbai02c
ota tco!c8200$$2c
c c "c

:c This association was
established in 2005. Most of the operations of this associations includes sale of gold
ornaments and not much of the people are interested in any kind of commodity trading.
Mr. Ashok H. Dharmawat who is the president of the association has a very good
relationship with the local political leaders and hence enjoy full rights to take any kind of
decision in the interest of the association.c
amecofcthecpresiet:cshokc!charmawatc
o!cfcmembers:c$c
ota tcetails:c82088$7m(c2766$$6oc
ress:cfcc7'6copp!c hryachric
ulsic howkce c)c0cashicavic umbaicc
c
c cccccc c cccccc
c

c "c c
c :c
this association is in close proximity to the local train station of Ghatkopar. It is almost 6
years old organization which includes sale and purchase of gold ornaments. The office
is headed by Mr. Ganpat Jain who is senior member and is a large exporter.c
amecofcthecpresiet:c r!capatc"aic
o!cfcmembers:c7c
ota tcetails:c868$mc278$08oc
ress:c Pushpamc "ewellersc hopc o!c 7c orakhathc alapalatc hawlc tatioc
oacikrollicwestc umbaic
c "c
:c This is one of the biggest
associations in Mumbai having almost 117 members. It has very large customer base
having customers from Kurla and other neighborhood places. The main operations is
the same as other associations i.e. sale and purchase of gold ornaments. The event
could not be handled due to the ill health of Mr. Hemraj Mehta who is the president of
the organization.ccc
amecofcthecpresiet:c r!cemrajc ehtac
o!cofcmembers:c27c
ota tcetails:c022220$oc
ress:c ajushreec "ewelersc c shirwac uiligc pp!c otelc r hic !c
haryac argc hemburcec umbaic0007c
c
c cccccc c cccccc
c

Pc "c
:c Its operations last almost five
years starting in the year 2003. Since it is not a very large association and most of the
families are proper business class so they prefer buying gold from places like Bandra
and Andheri. This is the reason that people in the association are more interested in
commodity trading and that is why a good response came from this association.c
amecofcthecpresiet:c r!clokcshokcoshic
o!cfcthecmembers:c2c
ota tcetails:cc0222228c
ress:c22cPraffulciwascgracoachatkoparcc umbaic00086c
c c :c Most of the jewelers are independent and there are no
associations in this region. However there are certain big players in these locations

c c *c

c
P who dominate the market there
and so any event could not be held in these two locations. However the jewelers who
are trading in commodity are doing their business through ccP
c
" who are themselves member of ICEX.
c
c cccccc c cccccc
c
e ommeatioscaceaigsc
e ommeatios:c
8 ompaycshoulctryctoc overcmorecumbercofclo alitiesctoc

apturecewc ustomers: -c )c$(,c(,&$c!3c#)$,)/,c%!.0,$#$#!) c9#$(c$(,c"&-*,/$c0"&5,-c
#)c$(,c47/#),//c&/c$(,c.&#)c-#+&" c$(,c%!.0&)5c/(!7"1c$-5c$!c%&0$7-,c.!-,c)7.4,-c!3c%7/$!.,-/c
$!c#)%-,&/,c#$/c%7/$!.,-c4&/,:c(,/,c%7/$!.,-/c/(!7"1c4,c3-!.c!$(,-c0&-$/c!3c$(,c%#$5c9(,-,c$(,c
0,!0",c&-,c)!$c.7%(c&9&-,c&4!7$c%!..!1#$5c$-&1#)*c&)1c9(,-,c$(,c1!.#)&$#!)c!3c!$(,-c
0"&5,-/c#/c",//:c
c
8 orecaggressivecmarketigcstrategiescshoulcbecimplemete: -c
)c/0#$,c!3c%(&-*#)*c",//c3,,/c3!-c#$/c.,.4,-/(#0c%!.0&)5c/(!7"1c/$#""c$-5c$!c.&;,c&$$,.0$/c$!c
3!-.&"#<,c4,$$,-c/$-&$,*#,/c#)c"#),c$!c.&;,c0,!0",c"7-,c&4!7$c#$/c.,.4,-/(#0:c
c
8 embershipc oulcbecmaecabsolutelycfreecifcpossible:c 3c
.,.4,-/(#0c0-!%,//c%&)c4,c.&1,c&4/!"7$,"5c$(,)c#$c%!7"1c(,"0c$(,.c&$$-&%$c.!-,c%7/$!.,-/:c
#)%,c$(,c%7/$!.,-/c9!)=$c(&+,c$!c0&5c&)5$(#)*c3!-c$(,c.,.4,-/(#0c$(,5c9!7"1c&+&#"c#$c&)1c
"&$,-c!)c$&0c$(!/,c%7/$!.,-/c$!c.&;,c"&-*,-c+!"7.,/c!3c$-&1,/c17,c$!c#$/c",//c$-&)/&%$#!)c3,,c
9(#%(c#/c$(,c"!9,/$c&.!)*c&""c$(,c,6%(&)*,/:c
c
8 omecbigcplayerscalreayctraecic ommoity:-c(,-,c&-,c%,-$&#)c4#*c
0"&5,-/c9(!c&"-,&15c$-&1,c#)c%!..!1#$5c9#$(c.,.4,-/(#0c7)1,-c c c c9(#%(c#/c
&"-,&15c&c.,.4,-c!3c
:c
c
eaigs:-
8 iffi ultycicmakigcpeoplecbelievecthatcthereciscacfuturecic
ommoityctraig: -c!/$c!3c$(,c0,!0",c4,"#,+,c$(&$c#$c#/c&c"!//c.&;#)*c0-!%,//c$!c
#)+,/$c#)c%!..!1#$5c$-&1#)*c17,c$!c#$/c0!!-c0&/$:c(,5c4,"#,+,c$(&$c#$c(&/c.!-,c$!c1!c9#$(c
*&.4"#)*c#)/$,&1c!3c07-,c&00"#%&$#!)c!3c.#)1:c
c
8 Peoplecarecrathercmorec o erecaboutctheircwholesalec
busiess: -c7,c$!c/(!!$#)*c*!"1c0-#%,/c$(,c1,.&)1c3!-c*!"1c!-)&.,)$/c(&+,c1,%-,&/,1c
1-&/$#%&""5:c#)%,c$(,/,c>,9,",-/c&-,c)!$c+,-5c4#*c0"&5,-/c$(,5c1!)=$c(&+,c,)!7*(c%&0#$&"c$!c#)+,/$c
#)c4!$(c$(,c$(#)*/c/#.7"$&),!7/"5:c
c
c cccccc c cccccc
c

!c$c

c Pc
c
Parametersc xc exc m c exc ommetsc
ppeara ec
Positioigc Scattered Appropriate Ideal average
ompa tc No Yes Yes No
esigc Lacklustur Ok Good Ok
e
eterc Dull Good Best good NMCE picture
pi turec animated so good
olorcthemec Dull Ok Ok good ICEX going with
Indiabulls
hartsc Stagnant Responsiv Responsiv no chart
e e
c
aguagec
optiosc ic Yes No No No Hindi and Gujarati
otherc option in MCX
laguagesc
userc frielyc Yes Yes Yes Yes
laguagec
c
formativec
patesc Ok Better Best ok
topc gaiersc No Yes No yes
aclosersc
ffersc Attractive No Yes no
Parametersc c c c c ommetsc
c
c cccccc c cccccc
membershipcc Attractive Organized Both No phone numbers in
etailsc MCX
eeba kc Yes Yes Yes No
e&uiryc No No Yes No
etailsc
ewsc No Yes Yes No
+uotesc No No Yes No NMCE provides
quotes of all
commodities
memberc No No yes No specific area for
a outc members
traec No No yes No
alearc
memberc No Yes no No
alearc
Partersc Yes Yes yes Yes good utilization of
space by NMCE
but not ICEX
kowlegec Yes Yes yes Yes best in NMCE,
hubc ICEX provides user
manual

c
traigcportalc No No yes No live market in
different
languages,
interactive
geeralc No No yes No
e&uiryc
sear hegiec No No yes No
Parametersc c c c c ommetsc
c
c cccccc c cccccc
oliec No No yes No
membershipc
Parametersc MCX NCDEX NMCE ICEX Comments
mobilecfeesc Yes No yes No
rsscfeesc No No yes No
imatiosc Offers None everything No
best
c
c
c scattered lack of losers and space wasted on partners
information animation gainers
c user lack of repetitive tabs
friendly to offers
a limit
c stagnant chart less information
c
Pc mobile Charts live market colour
feeds theme
c language compact animation picture
option design
c rss feeds
c testimonials
c
c cccccc c cccccc
c
After comparing the websites of different commodity exchanges the observations are:
1) As far as websites¶ appearance is concerned NMCE and ICEX are far ahead of
other two exchanges.
2) Coming to language options MCX website is available in two most important
languages that is GUJARATI and HINDI in which most of the commodity trading
is done.
3) Coming to the information pattern, NMCE has the maximum information available
on its website including price quotes of all the commodities and also the
membership details.
4) NMCE also makes perfect use of space and shows price feeds in different
languages. Also its website has complete user manual.
c
c
c
c
c
c
c
c
c
c
c
c cccccc c cccccc
c

c
The comparison of different websites has led to the following

recommendations:
1) ICEX should come up with different language options so that people
can easily communicate with the website and also the level of
complications reduces to a larger extent.
2) ICEX should also include charts and graphs for different parameters
so that the traders¶ work becomes rather simple.
3) They can also come up with live market price feeds and situations to
make the website more interactive.
4) The company should also attach testimonials of various traders that
are presently trading through ICEX portal which gives a good
impression about the company.
c
c
c
c
c
c
c
c
c
c
c
c
c cccccc c cccccc
c

cccc
c
c :c
cc c c cc
ocyouctraecic hi hcex hagecocyouc

ommoities? prefercforcoliectraig?
?
&
? ?
5,/c 4
?
)! %
?
1
?
Of all the people trading online only 16% people trade through ICEX.
It shows that ICEX has a lot of potential to grow and to increase its customer
base.
However for this ICEX has to implement aggressive marketing strategies like
compensation schemes for traders who trade in larger volumes.
Also setting certain days free for trading on the exchange will help in
increasing the customer base.
c
c cccccc c cccccc
recyoucawarecofcoliec
traigcic ommoities?
?
5,/c
)!
?
fc cthechowcocyouc akcthecfollowigcfa torsc

omectockowcaboutcit? whi hciflue ecyouctoctraec
overc ?
? ?
& ? &
4 ? 4
?
% %
? ?
?
1 1
? ,
The people trading in commodities online have very less knowledge about ICEX.
Also the people who are trading on ICEX has just one thing in favour of it is that it has
very less transaction cost.
For this the company should try to make more attempts to increase its USP¶s.
They should try to make more attempts to make people aware about their less transaction
cost and other value added services like cheaper memberships and also free set up of its
software.
c
c cccccc c cccccc
ocyoucfeelctheciformatioc ICEX has not been able to

proviecbyc ciscsuffi ietcforc provide sufficient information to
traigcacothercbeefits? its customers.
To face this challenge they
should try to make more
advertisements in different media
and try to ake more awareness
? 5,/c campaigns.
? )!
Most of the people said that they

are not at all satisfied with their
services since ICEX has not
a cc c
cresolve c been able to settle disputes
between their members.
? For this ICEX should make more

? stringent laws to avoid such
5,/c problems in the future.
)!
)@&
?
c
c cccccc c cccccc
hi hcex hageciscmostc The survey also showed that

a outablecic asecofcayc MCX is the most accountable
isputecbetweecthecparties? organization in case of any
kind of disputes.
For this ICEX should study
as how MCX handles its
operations if there is any kind
? of settlement disputes.
&
ICEX should also try to
? enforce stringent laws to
4
avoid any kind of Disputes
%
? among the parties.
1 This will not only help ICEX
to retain its customers but
? also to capture new
customers that had some
issues with other exchanges.
c c
c
c
c
c
c
c
c
c
c
c
c cccccc c cccccc
c
P:c
º www.ncdex.com
º www.icexindia.com
º www.mcxindia.com
º www.fmc.gov.in
º www.bombaybullion.com
º I have also followed gold reports given by ICEX
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c cccccc c cccccc
c
exure:cac
+uestioairec
,,,,,,,,,,,,,,,,,,,cccccccccccccccccccccccccc,,,,,,,,ccccccccccccccccccccccccccccccccccccccccc
P
,,,,,,,,,,,,c
c
Q1:- Do you trade in commodities?
a) Yes
b) No
Q2:- How long have you been trading in commodities?
a) Less than one month b) 1 to 6 months c) 6 months to a year
d) 1 to 3 years e) Over 3 years
Q3:- Are you aware of online trading in commodities?

a) Yes
b) No
Q4:- How long have you been trading online?

a) Less than one month b) 1 to 6 months c) 6 months to a year
d) 1 to 3 years e) Over 3 years
Q5:- Which exchange do you prefer for online trading?

a) MCX b) NCDEX c) NMCE d) ICEX
Q6:- If ICEX, then how do you come to know about it?

a) Newspaper
b) Internet
c) Recommended by someone
d) Flier or coupons
e) Others, please specify: «««««««««««««««««««««««
c
c cccccc c cccccc
Q7:- Was the membership process simple or complex?

a) Simple
b) Complex
Q8:- To what extent does the transaction fee plays an important role in selecting ICEX
as the medium of exchange?
a) Very important
b) Important
c) Neutral
d) Not important
e) Least important
Q9:- Rank the following factors which influenced you to trade over ICEX?
a) Price
b) Transparency
c) Accountability
d) Value Added Services
e) Information Availability
Q10:- Do you feel the information provided by ICEX is sufficient for trading and other
benefits?
a) Yes
b) No
Q11:- Overall, how satisfied are you, with services of ICEX?

a) Very satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Very dissatisfied
c
c cccccc c cccccc
Q12:- Have you ever been a part of any kind of dispute while trading over ICEX?
a) Yes
b) No
Q13:- Was ICEX able to resolve the dispute?

a) Yes
b) No
Q14:- Which exchange is most accountable in case of any dispute between the parties?
a) MCX b) NCDEX c) NMCE d) ICEX
Q15:- In thinking about your most recent experience with ICEX, how much satisfied are
you with the customer services?
a) Very satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Very dissatisfied
Q16:- What specific/general improvements should be made regarding ICEX and

charges?
Please specify:
«««««««««««««««««««««««««««««««««««««««
««««««««««««««««««««««««««««««««««««««..
c
c
c
c
c cccccc c cccccc

Report On Icex

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Report On Icex

Uploaded by

Copyright:

Available Formats

cccccccccccccccccccccccc c c

ccc c c   c c cccccccccccccccccccccccccccc c

I am also thankful to MR. DHARMESH PANDYA, NATIONAL HEAD, ICEX

 c  cc c 

 c  c c  c 

  cc cc c c c ccc

  c  c  c c    c c c

 To study the awareness level of ICEX in minds of consumer and how do

 To assist business development team in achieving their sales targets and

Indiabulls Financial Services is an integrated financial services powerhouse

Indiabulls is a full service investment firm offering clients access to a tremendous

access to all information and products. As we've expanded and developed to

Philosophy:  "c# c$%&c

We are proud to introduce to you iabullsc Professioalc etwork

aurabhc ittalc is a Director at Indiabulls. Declared the best graduating student

It is a screen based on-line derivatives exchange for commodities and has

 Provide fair, transparent and efficient trading platform to all participants

 Meet the international benchmarks for the Indian commodity market

 Attract a wide array of end users, financial intermediaries and

 Become a major trading hub for most of the commodities

 To provide product portfolio to suit the trading community needs in an

 We will provide the widest range of benchmark future products available on

 Our objective is to serve customers with a global product line,

º Joint venture between Public/Private entities Well capitalized Rs. 100 Cr

º Professionally driven exchange with an entrepreneurial mindset

º Aim to remove discrepancy in the commodities market by building

º Unprecedented price transparency and market depth

Quartz/Silica Sand, Garnet Sand, Kaolin (China Clay), Vermiculite)

º Multi Commodity Exchange (MCX)

The wholesale market in India, an important component of the India commodity

iac ommoityc arketclobalc eario

United States 8133.5

iacullioc arketc sso iatioc

mporta ecac ses

It is effective portfolio diversifier, which summarizes the usefulness of gold in

Gold is effective diversifier during economic stress periods or instability.

2006 2486 3574 3409

mine, about 2292 tons.

major spot and future market in Japan.

º Gold holdings in India are estimated to be in the range of 10000-13000 tonnes

tate 20006 200607 200708*

Karnataka 2.846 2.334 2.831

Jharkhand 0.201 0.154 0.027

Gujarat (by-product) 6.710 10.335 9.135

200 617.7 2961.5 20.86

Source: GFMS * provisional

º World macro economic factors including US Dollar, interest rate and so on

º Global gold mine production

º Demand by Central banks

º Domestic demand, which is linked to agricultural prosperity and

º Producer / miner hedging interest

º Comparative returns on stock markets

º US dollar movement against other currencies

º Indian rupee movement against the US dollar

º Global economic situation

1) Gold is an important commodity for every nation as it is mandatory by the world

º Well established Brand Name

º Pan India reach through established equity terminals

º First Public Private commodity exchange

º Efficient delivery mechanism through accredited warehouses

º Collaboration with BBA biggest bullion association

º Late arrival in the market

º Staff not well trained

cccccccccccccccccccccccc c c

ccc c c c c cccccccccccccccccccccccccccc c

c cc c

c c c c

cc cc c cc ccc

c c c c c c c

To study the awareness level of ICEX in minds of consumer and how do

To assist business development team in achieving their sales targets and

Philosophy: "c# c$%&c

We are proud to introduce to you iabullsc Professioalc etwork

aurabhc ittalc is a Director at Indiabulls. Declared the best graduating student

Provide fair, transparent and efficient trading platform to all participants

Meet the international benchmarks for the Indian commodity market

Attract a wide array of end users, financial intermediaries and

Become a major trading hub for most of the commodities

To provide product portfolio to suit the trading community needs in an

We will provide the widest range of benchmark future products available on

Our objective is to serve customers with a global product line,

iac ommoityc arketclobalc eario

iacullioc arketcsso iatioc

mporta ecac ses

tate 20006 200607 200708*

200 617.7 2961.5 20.86

hecvariouscasso iatioscthatcwerec apturecwere:cc

c c "c

amecofcthecpresiet:c r!cemrajc ehtac

amecofcthecpresiet:c r!clokcshokcoshic

ress:c22cPraffulciwascgracoachatkoparcc umbaic00086c

8 ompaycshoulctryctoc overcmorecumbercofclo alitiesctoc

ocyouctraecic hi hcex hagecocyouc

fc cthechowcocyouc akcthecfollowigcfa torsc

ocyoucfeelctheciformatioc ICEX has not been able to

Most of the people said that they

? For this ICEX should make more

hi hcex hageciscmostc The survey also showed that