Risk Manager

The role of risk manager is to manage the risk associated with the transaction.He should manage is the execution of spot contract and manage the fund for the profit earned by clients.

Regulation body

SEBON(Security Board of Nepal) is the regulatory body regarding commodity exchange,however the same hasn;t been included in the Securities Act, finance ministry is in the process for inclusion of commodity marke t in the act.

Margin

Client needs to deposit the certain amount for trading which is called margin.The margin is defined by the size of contract. For an example for to 

Taxation in Commodity

Vat is levied in commodity exchange. So the exchange and brokers are to get Vat registered. Client is levied with Capital Gain Tax(CGT) in their income.TDS is deducted in transaction between broker and clearing house and in between Exchange and Clearing house.

Function of clearing house

Clearing house has the function of Disbursement of the amount deposited by client to exchange,retain their commission,withdrawal.

Agreement

Client is introduced via brokers or clearing house.Agreement is done between brokers or clearing house and introduced to exchange.

Exchange in Nepal

At present there are 6 exchange running in nepal.Commidities and  Metal Exchange Nepal Ltd(COMEN) is the first , and other are:Nepal Spot Exchange limited(NSE),Mercantile Exchange Nepal Ltd(MEX),Nepal Derivative Exchange Ltd(NDEX),Kathmandu Commodity Exchange(KCE) and Wealth Exchange(WEX)