Multi Commodity Exchange of India (MCX), India's No. 1 Commodity Exchange signed an agreement with IMC Chamber of Commerce and Industry (IMC) today.

There is a need to educate key stakeholders of commodity-exposed companies in the areas of hedging in view of risks associated with commodity prices and their management. Under the aegis of this MoU, the entities will jointly undertake knowledge building and research initiatives on relevant contemporary issues in the commodity derivatives market.

The initiative further envisages both institutions to jointly conduct interactive sessions, awareness programmes, conferences and other activities across the country to sensitize a multitude of diverse stakeholder groups including corporates and SMEs about the impact of commodity price risks and to encourage them to adopt appropriate risk management measures.

Mrugank Paranjape, MD and CEO, MCX said, ''We are pleased to be associated with one of most renowned and reputable industry bodies in India which would enable us to synergize our efforts on commodity derivatives market development. With this MoU, we hope to leverage IMC’s wide network of small and medium enterprises and a vast membership base to reach out to the commodity stakeholders across the country, and empower them to get access to an efficient and cost-effective hedging platform to manage their price exposure. Thus, this collaborative endeavour would be a big move in the growth and development of businesses of all scale that contribute significantly to the country’s GDP and employment.''

Shares of the company declined Rs 12.7, or 1.65%, to settle at Rs 756.50. The total volume of shares traded was 29,972 at the BSE (Monday).