The National Stock Exchange signed a Memorandum of Understanding (MoU) with the Bharat Metal Exchange on Monday, June 22, to promote and develop non-ferrous metal derivatives in India.
The partnership aims to strengthen market participation, enhance price risk management practices, and support the development of efficient hedging tools for stakeholders across the non-ferrous metals value chain. Through the collaboration, NSE and Bharat Metal Exchange (BME) will work together to develop new products in the non-ferrous metals space and promote awareness focused on price risk management using tools such as exchange-traded non-ferrous metal derivatives.
It will also facilitate engagement with producers, consumers, processors, traders, importers, exporters, industry associations, and financial market participants to encourage broader adoption of exchange-based risk management solutions.
The National Stock Exchange (NSE) said in a statement that India remains one of the world’s largest consumers of industrial metals and added that the ongoing expansion in domestic manufacturing, infrastructure, renewable energy, and electric mobility is driving the need for more transparent and efficient mechanisms to manage price volatility.
The collaboration brings together NSE’s robust derivatives market infrastructure and BME’s longstanding expertise and deep engagement with India’s physical non-ferrous metals ecosystem.
The MoU was signed by BME President Sushil Kothari, on behalf of the organisation.
“This collaboration will help bridge the gap between the physical and derivatives markets by creating greater awareness about risk management tools and encouraging wider participation from producers, consumers, traders and processors. We believe that the combined strengths of BME’s trade & industry expertise and NSE’s robust market infrastructure will contribute significantly to the growth and adoption of non-ferrous metal derivatives in India,” said Sushil R. Kothari, President, BME.
Kothari further added that, as part of the collaboration, NSE and BME will jointly undertake industry outreach initiatives to enhance awareness of non-ferrous metal derivatives and their role in effective price risk management.
He also said that the partnership reflects the shared commitment of both exchanges to support the growth of India’s commodity markets and provide market participants with efficient, transparent, and robust risk management solutions.