Organization

To survive in the unaware environment turmoil was really tuff at the initial phase ( i.e on 20th November 2008 )of our derivative exchange. But with the effectual afford of our youth group we have successfully accomplished our mission and been able to exist as the best exchange where buyers meet sellers to take good advantage of the price fluctuation of the commodities. The first Nepali commodity exchange established by the well experienced and expert youth facilitates you with the cutting edge risk management tools for trading. NDEX helps investors and business to manage unpredictable price movements.

Features of NDEX

Talking about the commodity market, it's been known as the most diverse marketplace. Derivative exchange provide the widest range of benchmarked product where people come together to manage their risk. Its unique feature is the main reasons which have made it sneak its head out of the crowd in the market. In the context of Nepal derivative exchange, we allow our client to trade by charging limited margin money which is paid during the initial phase of the trade. The customer can trade in large amount of product by paying the small amount in comparison to its market price. When the client gets created they get our friendly software from our trading member/broker which is made to facilitate them with simple way of trading without any undue worry. The software is designed in such a way that our clients do not get any problem to get used to with it. Clients can perform the buying and selling activity using the broker-provided proprietary software that runs through internet. NDEX have also provided a strong loss managing tool called "Hedging" which is considered as the best risk minimizing tool for the traders. In short, the NDEX provides the awesome online trading platform where traders can trade in different commodities provided by the exchange (Gold, Silver, Coffee, Corn, Natural Gas, Crude oil.) with a click. Here traders have plenty of business option as

they are provided with various bullions, base metals, energy, and agro-product. We also know that online trading is the fastest way of trading, referring to its speed of which transaction can be executed and settled since there is no need for any paperbased documents to be filled, copied and entered into an electronic format. It is the great access of trading for the people by actually taking control of their own investment instead of relying on other by having a good knowledge of the market. The most important want of the client is that they want everything to be visible and clear. Coincidently "transparency" is the only feature that this exchange got from the initial period of the establishment. "Transparency" here we refer to the communication between trading partners and the exchange about the policies, regulations affecting foreign trade, mechanism and management. Every detail about the company is clearly communicated between the trading partners. While investing in the particular commodity clients are made known about every small detail that is related to exchange by trading member. The most amazing thing about our derivative market is that everything is presented to client as per their request on prompt time. As the client buys the contract and takes the ownership they can sit in any of the position, either "buy" or "sell". Whichever position they think is suitable at that scenario they can take that, since the trouble of matchmaking between buyers and sellers is already been fixed by the clearing house. People can make good use of the rising and falling prices to their best as they are allowed to do both buying and selling. Its the another aspect of derivative market that neither the seller is the actual supplier of the commodities, nor the buyer is the actual user of the purchased goods unless the certain customer is personally involved with the actual buying and selling.

The contract in which the customers trade contains the future price which is analyzed and fixed on the basis of current market price. That price differs from contract to contract though the commodity remains the same. The contracts also have its certain expiry date. A client buys the contract, trades according to their analysis for a certain predetermined period. They yield certain profit or loss as per their trading strategies or style and the time comes when their position is settled by the clearing house on its expiry day. It is up to the client whether they want their commodity on their hands or as cash. If the customers want delivery than a certain receipt is issued to them, enabling him/her to get their product. Derivatives exchanges have their own warehouse for the customer who want their product to be delivered as coded by the selling party, but due to the lack of regulatory body and geographical problems to some extends we don't have any warehouse/vault/tank, so we're not being able to provide our client with any delivery system. For the one who is not interested in the product delivery our clearing house does the cash settlement for them. With the help of the banking partner i.e Nepal Investment Bank, the clients gets the amount of money they've made after their trading period. Apparently derivative market have

intelligent grasp on the functioning of market and the contract's figure made for the future trade.

Benefits of NDEX
Given the budgetary constraint and the ever-looming threat of inflation, the prospect of attaining the high growth rates needed for full employment may not be very bright in the volatile future in country. A decline in government deficit and private sector wasteful spending along with a rise in savings and productive investment could be very helpful, but this may not be possible when the value system is taking more time lags to implement the mandatory act regarding to its financial sectors. These days, the market price of every consumable product tends to rise day by day due to numerous reasons and this has been continuously increasing from last three years. Moreover, all of us are compelled to pay it without speaking a single word. And government alone is not able to have control over the market volatility. Had if all the people are aware about the margin trading in commodity derivative the expected price can be extracted through trading in derivative exchange. Derivative is the financial assets whose value is derived from the underlying assets and the price is predetermined between two parties at future expiry date. Various types of derivative instruments are future, forward, swap and option. Among all only future contracts are traded in our country. Though the introduction of commodity is in early stage in Nepal but if we consider the history in global market it has started from 18th century. As from the worldwide prospective, 97% of commodities are traded in derivative exchange and only 3% are deal in physical market. In fact, a sophisticated market mechanism can of course eliminate the hurdles of agricultural economy. And technically, Commodity exchange mechanism can be identified as the right fit. Therefore, it can be understood that, implementing the principle of commodity market in the agricultural sector can literally inflate the volume of the agro-economy and ultimately increasing the national economy. In top of that, it seems to be that Commodity market is making a bullish run and even exceeding its trade volume against stock exchange within the short-period of 5 years of establishment in Nepal. This certainly proves that there exists high positive sentiment over commodity market.

The commodity derivative works on behalf of beneficial not only to a consumer, producer, corporate, investors, government but the whole derivative ecosystem that will assist in strengthening the economy of the country. Commodity market establishes the (certified) agricultural products as a financial instrument or a sector of investment which must be a standardized quantity and quality, which sought for the standard warehousing/function to preserve the product. Certainly, if the agro-industry enters the commodity market then, the agriculture products can take advantage of the standard warehousing stores available in the market. Furthermore, the positive sentiment of market is enough to encourage the needed investment and entrepreneurship in the warehouse system. Availability of warehousing system certainly mitigates the compulsion of the farmer to have their products sold as soon as possible at any minimum price in order to escape product loss.

An individual can trade in exchange at a price upon which the commodity will be available at future point of time which will added advantage to them since the prices are translucent and predictable. In addition, they could also expose to hedging techniques which minimizes the price risk movement in underlying assets. In the same way producers can safeguard own price by introducing his product in derivative market. Again it would be more beneficial when Ministry of Finance implement the Public Warehouse Act through which people can give and take delivery of commodity as per their need. Speculators are the main players till now in our country who are more benefited through this market. It is the innovative investment platform where an individual can earn maximum profit with required margin money in short time period if he is provided with sufficient knowledge and information regarding the market. So, they are only the opportunist of the market volatility who generally impede in generating benchmark price. Our neighboring country, China and India are successfully entertaining the benefits of this market from last five years. If we take the example of India where big multinational companies like Hindustan Copper ltd, Mahindra and Mahindra, Bajaj Electricals are dealing in commodity as raw material and also involve in hedging risk associated with the price tomorrow. However, due to lack of regulatory body and Public Ware house Act corporate in our country are not trading in derivative exchange.

Majority of commodities traded on global commodity exchanges are ago-based. Commodity exchanges therefore are of great importance and hold a great potential in case of economies like Nepal, where more than 65 percent of the people are dependent on agriculture. In the present scenario, it is expedient to focus on

local farmers to explore their possible roles as aggregator for price risk

management and collateralized finance. These aggregators can assume the role of facilitating agents or a risk-bearing layer between the farmers and the commodity exchanges which will motivate them to promote our local product in
international market contributing to national Gross Domestic Product.

So far when Ministry of Finance will regulate the exchanges in our country then local commodity market will get integrated with international commodity market. This will encourage making Nepalese commodity viable in international market entailing the advantage of import and export in Nepal. Furthermore, we can also take advantage of our geographical structure between our neibouring countries by establishing the financial hub acting the intermediately role. Students of Bachelors level are also getting the opportunities to transfer their theoretical knowledge in practical form in existed exchanges since financial derivative is included in course of curriculum in BBA and MBA. Government not being the exception is earning more tax revenues rather than other business sectors in our country. Hence, implementation of the regulatory body in the country helps to encourage the exchanges but also have crucial role in the upliftment of the economic condition of Nepal. When the commodity market ecosystem gets benefited the whole economy of the country would also benefit. So, proficient and organized commodity exchange plays a complementary role in the overall development of economy thereby generating the employment opportunities, business generation, investment platform and growth in the financial market. Not only this, the trading of standardized and graded commodities help to bring quality products in market that protects consumer right and so far we could control the level of inflation to some extent.

Vision and Mission

Our vision: NDEXs vision is to achieve excellence in commodities and derivatives trading with focus on market participants delight and satisfaction through diversified quality product and services, thus allowing participants the ability to mitigate the financial risk and achieve better results. Our Mission: We are dedicated to bring new and creative ideas to operate both in our local product offering and marketing events. Creating harmonious environment for derivative trading with the enforcement of regulatory regime where we are working.

Developing proper market education and research system. Setting up complete commodity derivative eco-system in Nepal in 5 years time.

BOD

Board of Director

Chairman Santosh pradhan Email: santosh.pradhan@ndex.com.np

Non-Executive Director Ashok Kumar Pradhan Email: ashok.pradhan@ndex.com.np Ajay Gachhadar Email: ajay.gachhadar@ndex.com.np

Independent Director Santosh Pyakurel Email: santosh.pyakurel@ndex.com.np

Management

Nepal Derivative Exchange Limited is a national level commodities and derivative exchange promoted by highly prominent business personalities/ groups and reputed individuals of the country who have excelled in their field of business/profession with very good integrity and social standings.

Under the guidance of reputed Board of Directors, professionals and young but proficient and dynamic management team having sound experience with proven track-record in the derivative industry, NDEX is committed to offer a wide range of derivatives and commodities products and services tailored with the state-of-the-art technology to meet the unique requirements of all the customer/clients and stakeholders and thereby delight them by exceeding their expectations.

MD & Chairman Santosh pradhan Email: santosh.pradhan@ndex.com.np

Sr.Vice President & Head Compliance & Surveillance Shailesh Jha Email: shailesh.jha@ndex.com.np

Vice President & Head HR Bishowjan Thapa Shrestha Email: bishowjan.shrestha@ndex.com.np

Administration & Client Services Samita Basnet Email: samita.basnet@ndex.com.np

In Association With
FNCC (Federation of Nepal Chamber of Commerce) NCC (Nepal Chamber of Commerce)

SAFE (South Asian Federation of Exchange) MAN (Management Association of Nepal)

CAREER
It's our boon to welcome you to NDEX, the best nepali derivative exchange highly driven by the pioneering professional youth. We respect the new innovative ideas of yours and work on giving them the right value which it worth. We have that "the great place" factor in us so that you enjoy what you doing as the 'work'. Trust us; your valued idea can make big difference. As a growing derivative market we outsourcing for innovative, vibrant and professional people who are willing to blend in our fabulous working environment. We ensure you that you'll be given what you deserve according to your potential.