@article{Ramaswami:7919,
      recid = {7919},
      author = {Ramaswami, Bharat and Singh, Jatinder},
      title = {Underdeveloped Spot Markets and Futures Trading: The Soya  Oil Exchange in India},
      address = {2007},
      number = {691-2016-47381},
      series = {Seminar Paper},
      pages = {29},
      year = {2007},
      abstract = {Abstract The limited presence of futures exchanges in  developing countries where commodity markets fall short of  the ideal underscore the importance of understanding the  relation between spot and futures markets. The paper  examines the exceptional success of the soya oil contract  at the National Board of Trade (NBOT) in India. The paper  asks whether the NBOT contract exhibits the fundamental  features of mature futures markets in terms of its use by  hedgers. If the market offers arbitrage opportunities to  hedgers and if such activity is significant, then the  activities of commercial firms should affect the returns to  their hedging portfolio i.e., change in basis. This insight  is developed into an examination of the impact of soya oil  imports on the basis. Despite the lack of key market  institutions such as certified warehouses and centralized  spot prices, the NBOT contract compares well with mature  exchanges. Soya oil imports exercise a significant impact  on the basis and provide enough short-term volatility to  make the contract attractive to both hedgers and  speculators.},
      url = {http://ageconsearch.umn.edu/record/7919},
      doi = {https://doi.org/10.22004/ag.econ.7919},
}