A Critique on the Existing Structure of National Commodity Exchange Limited (NCEL)

Abstract

History reveals that the urge to foresee the future has been very inherent to the human nature. This desire is not for the purpose of mere amusement but to satisfy an important need; the need to plan out one’s present course of action for a fertile future. Money minters have a greater disposition to such a desire. Futures Markets provide an avenue for their role play. Underlying such gaming fields is the ultimate stakeholder, highly vulnerable to the foul play of the supporting dimensions. In Pakistan, an agrarian economy, the farmer is the most in need of such a platform, yet at the mercy of stronger and less needy players. Thus the major objective of this project is proposing a model to phase out the conflict of interest between the supporting dimensions and work with full coherence towards the benefit of the ultimate stakeholder. National Commodity Exchange Limited (NCEL) hence remains in the limelight of our critique. There is an in depth study of the present structure of NCEL, which is then compared with the world’s largest commodity futures exchanges. The proposed model however, does not merely depend on this comparison, but more directly on the clause of plausibility with reference to our local economy.