The NCDEX Commodity Index is an equal-weighted

spot price In finance, a spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for immediate settlement (payment and delivery) on the spot date, which is normally two business days after t ...

index of 10 agricultural commodities covering different goods such as oils and oilseeds, fibres, etc. It is the first such index to be launched in

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

. Based on the components of the spot price index, NCDEX also displays the national index futures- essentially, the no-

arbitrage Arbitrage (, ) is the practice of taking advantage of a difference in prices in two or more marketsstriking a combination of matching deals to capitalize on the difference, the profit being the difference between the market prices at which th ...

price if one were to buy futures on the spot index. This price is derived by tracking the futures prices of the index components at the same weightage as the spot index. Currently, index futures are not allowed in India under the ''FCRA'' (''Forward Contracts Regulation Act'', 1952), which requires compulsory physical settlement of futures contracts.

References

Commodity price indices {{Agri-stub