BSE signs MoU with Cotton Guru Maha FPO Federation
BSE aims to facilitate collaboration in fields like organising educational awareness events for cotton value chain participants, including farmers across Maharashtra, and joint representation to ministries and regulators for further development of the sector, and work together for designing of new products on commodities contracts
BSE India’s premier exchange and the world’s fastest Stock Exchange with a speed of 6 microseconds has signed a MoU with Cotton Guru Maha FPO Federation, a market-facing company which is responsible for value-addition and marketing of member Farmer Producer Organisations and farmers. Via this MoU, BSE will be able to enable the Cotton Guru Maha FPO's members to effectively participate in knowledge-sharing initiatives to understand the benefits, techniques and strategies of risk management using cotton futures contracts.
Commenting on the association, Shri Sameer Patil, CBO, BSE said “BSE not only provides a robust and efficient platform for price discovery and risk management in cotton but also undertakes several educational and awareness activities to sensitize stakeholders about the modalities of using the exchange platform. The MoU with Cotton Guru Maha FPO will enable the Exchange to reach out to a large stakeholder group in the cotton value chain in one of the of the most prominent cotton growing, processing and textiles regions of the country.”
This MoU also signals a long-term engagement between BSE and Cotton Guru to undertake several educational and awareness activities to sensitize cotton stakeholders about the modalities of using the exchange platform. Against the current backdrop of covid and geopolitical uncertainty, awareness of risk management for cotton stakeholders is crucial as several factors like rainfall, pest attacks, exports have a bearing on cotton trade and prices.
BSE aims to facilitate collaboration in fields like organising educational awareness events for cotton value chain participants, including farmers across Maharashtra, and joint representation to ministries and regulators for further development of the sector, and work together for designing of new products on commodities contracts. Both parties would participate together in seminars and various other programs with mutual understanding to educate the people / community about the commodity derivatives markets, its benefits and encourage commodity stakeholders to hedge on exchanges. Further, both entities will cooperate in the growth and development of value chain participants and enable them to face competition and manage price risks better.
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
On Friday, stock of BSE opened lower but at was seen trading around 1.30 per cent higher in the initial hour of the trading session. The stock has gained 11.3 per cent on a YTD basis in 2022, so far.