Trade the Rain: NCDEX Opens India`s First Weather Derivatives Market by Amit Gupta, Kedia Advisory
NCDEX’s launch of RAINMUMBAI, India’s first SEBI-approved weather derivative, is a landmark step in financial innovation. Mumbai is known for its markets, monsoons, and Bollywood, and now its rainfall has become a tradable derivative contract . The contract witnessed trading of over 1,300+ lots on debut, is linked to Mumbai’s 2,206.7 mm Long Period Average rainfall, and carries a Rs 50 per mm multiplier. Developed with IIT Bombay using IMD data, it is among the world's pioneering exchange-traded rainfall derivatives, offering a transparent hedge against climate-linked financial risks for agriculture, logistics, infrastructure, and power sectors. — Ajay Kedia, Director, Kedia Advisory.
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