Non-ferrous metals on Reliance-SX radar

Reliance Spot Exchange (R-SX), a part of the Anil Dhirubhai Ambani Group, is looking to add non-ferrous metals like copper, zinc and aluminium to its portfolio soon.

The spot exchange, which has recently started trading in pepper, has applied for agriculture produce marketing committee (APMC) licences in three states, said Rajnikant Patel, chief executive officer of Reliance Exchange Next, a wholly-owned subsidiary of Reliance Capital.

R-SX, which entered the spot exchange business a few months back, is dealing in steel and pepper trading to begin with. Its per day trading in steel varies between 10 and 50 tonne. Patel, who was present at an interactive session on portfolio management, organised by the Indian Chamber of Commerce, said the exchange is considering setting up a centre in Kolkata for its steel trading activities.

"We would like to consolidate in existing verticals before moving on to other areas. We need to connect small mandis in India for better price realization for farmers," he said.

At present, membership at R-SX is based on invitation only. The exchange has already received a licence from a western state. According to a source, the exchange is in talks with APMCs in Gujarat, Maharashtra, Madhya Pradesh and Karnataka for spot trading of farm products.

It is also mulling tie-ups with transporters and warehouses. Negotiations are on with entities involved in assaying and grading. "We have tied up with local warehouses since many of those are lying vacant," Patel said. It is also involved in assaying and laboratory testing of commodities.