Axis Securities, a subsidiary of Axis Bank, has become the first-ever broking arm of a bank to take membership of a commodity exchange by registering itself with NCDEX. In September, Reserve Bank of India allowed banks wishing to undertake commodities derivatives clearing to set up a separate subsidiary for the purpose and adhere to the membership norms laid by market regulator Securities Exchange Board of India.
Axis Securities is also in discussion with MCX to take its membership. The trading volume in commodity exchange is expected to increase with the wide reach of banks broking firms such as Axis Securities besides boosting investors confidence in commodity derivative trading.
We expect with Axis Securities already on board and many more in line, the domestic commodity markets will deepen. It will increase the liquidity and distribution which would not only make the process of price discovery more robust, but also provide market participants a more transparent and conducive atmosphere to operate in. Axis Securities, said it will focus on reaching out to clients for agriculture and non-agriculture commodities business across the country, especially from semi-urban and rural India.