NSE and SUFI MoU to Build Steel Derivatives Ecosystem
Why in the news
The country’s leading stock exchange teamed up with a body representing steel consumers to help users manage swings in steel prices.
Key facts
- Partners: National Stock Exchange of India (NSE) and Steel Users Federation of India (SUFI).
- Focus areas: steel derivatives traded on exchanges, hedging, outreach and consultations.
- Purpose: cushion the risk of volatile steel prices.
- Who gains: steel producers, MSMEs, OEMs, infrastructure firms and other industrial users.
| Workstream | Purpose |
|---|---|
| Exchange-traded steel derivatives | Create a tradable market for steel price risk |
| Hedging mechanisms | Let users protect against price swings |
| Outreach and consultations | Engage industry users |
Exam angle
- Exchange: NSE.
- Industry body: SUFI.
- Concept: hedging with commodity derivatives.