NSE signs MoU with Bharat Metal Exchange to boost non-ferrous metal derivatives market

The National Stock Exchange of India (NSE) has signed a Memorandum of Understanding (MoU) with Bharat Metal Exchange Ltd. (BME), formerly known as Bombay Metal Exchange Ltd., to promote the development, awareness and adoption of non-ferrous metal derivatives in India.

BME, which has a history spanning more than nine decades, has built an extensive network across the non-ferrous metals trade and industry ecosystem. Through the partnership, NSE’s derivatives market infrastructure will be combined with BME’s industry expertise and engagement with participants in the physical non-ferrous metals market.

The collaboration is aimed at increasing market participation, strengthening price risk management practices and supporting the development of hedging tools for stakeholders across the non-ferrous metals value chain.

India is among the world’s largest consumers of industrial metals such as copper, aluminium, zinc, lead and nickel. With domestic manufacturing activity, infrastructure development, renewable energy investments and electric mobility continuing to expand, demand for mechanisms to manage commodity price volatility has also increased.

As part of the agreement, NSE and BME will work together on developing products in the non-ferrous metals segment and undertake initiatives to create awareness around price risk management through exchange-traded non-ferrous metal derivatives.

The two organisations will also engage with a broad set of stakeholders, including producers, consumers, processors, traders, importers, exporters, industry associations and financial market participants,to encourageg wider adoption of exchange-based risk management solutions.Commenting on the development, Sriram Krishnan, Chief Business Development Officer (CBDO) at NSE, said India’s expanding industrial economy requires efficient and transparent tools to help businesses manage commodity price fluctuations. He said the collaboration with BME is intended to deepen awareness and participation in non-ferrous metal derivatives and help market participants manage price risks more effectively.Sushil R. Kothari, President of BME, said the partnership is aimed at strengthening India’s non-ferrous metals ecosystem by increasing awareness of risk management tools and encouraging broader participation from producers, consumers, traders and processors. He added that the collaboration would help bridge the gap between physical and derivatives markets by leveraging BME’s industry knowledge and NSE’s market infrastructure.

Under the arrangement, NSE and BME will jointly conduct industry outreach programmes focused on the role of non-ferrous metal derivatives in managing price risks. The partnership reflects the efforts of both organisations to support the development of India’s commodity markets and expand access to transparent and efficient risk management solutions.

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