This week it was announced that the Bombay Stock Exchange (BSE) in Mumbai will take a 26% stake in the state-owned National Multi Commodities Exchange (NMCE) to counter the rapid growth of the Mumbai Commodity Exchange (MCX) and the Indian National Commodity and Derivatives Exchange (NCDEX). This development is interesting as it precedes the final enactment of the Indian warehouse receipts act which will transform farmer and supply chain financing in India.

Basically, by doing this deal, NMCE will be able to tap into the electronic trading system of the BSE and use it as a basis for agricultural contracts or even to trade negotiable warehouse receipts when the Indian warehouse receipts act comes into force later this year.

Another state body, the Central Warehousing Corporation of India (CWC), has a 26% stake in NMCE, which means the new shareholding group will have an excellent opportunity to add warehouse infrastructure to the NMCE offering. Put simply, NMCE seems to be providing the exchange function, BSE the technology and CWC the physical storage infrastructure.

Let s imagine we are a few months in the future and the tie-up is completed and the Indian warehouse receipts act has been passed. The idea could be that that you will be able to deliver goods into a CWC warehouse, who will issue an electronic warehouse receipt which can then be either traded on NMCE or used as security to raise finance with your bank.

All of this good news for collateralised lending and structured trade finance (off-balance sheet lending) in India. Because a warehouse receipt can be used as collateral for the loan, it eases pressure on a trader s balance sheet. This frees up more resources for the trader to use in other ways i.e. it adds liquidity to the system.

It has recently been reported in the Indian national press that CWC wants to leverage opportunities from its reach right across India. It wants to educate the farming community so it will understand how to use commodity risk management and warehouse receipts.

Once the BSE-NMCE-CWC tie-up is complete, the new grouping will be able to provide a system which is comprehensive, which serves the needs of traders and producers alike and which will offer new financing opportunities for trading firms both domestically and internationally.

Dan Day-Robinson is Managing Director of Day Robinson International, a global consultancy and training provider based in the United Kingdom which serves the international trade finance and commodities markets. As well as managing Day Robinson International, Dan Day-Robinson provides consulting services in the emerging markets and has recently worked for the World Bank, the British Government, the Common Fund for Commodities, which are all international aid and development agencies. In addition, as a former commodities trader and banker with Cargill and Kleinwort Benson, he works for banks and private institutions globally.

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So, you own a home and want to tap into some of the equity you have in your home to take care of some projects. You start calling mortgage companies daily to find out who will give you the best deal. They put you through their questioning and you play smart thinking that you are in charge and that you will outsmart them to get the best deal you can. If this is what you think, you better think again. Shopping for a home equity loan can put holes in your bank account unless you know how to go about getting the best deal.

First of all, what is equity? Equity is defined as the residual market value of your home, or the value that your home has accrued since you purchased it. For the first few years of paying for your home, you are not considered an owner, but a partial owner. Once you have paid back your entire loan, you are considered to own the house. However, your home will generally increase in value during the period of your repayment, and you can, in many instances, borrow against that value.

The amount of money you can borrow depends on the equity you have in your home. And the interest rate you will pay is dependent upon your credit score, your debt to equity ratio, as well as your income.

Home equity loans can get you into trouble if you do not properly prepare yourself for it. You need to keep in mind that there are serious consequences if you for some reason fall out on your loan repayment responsibilities. If you don t make your loan payments for whatever reason, your lender has the right to foreclose on your home.

Equity loans are a great resource for those people who need access to funds but do not want to touch what they have in their 401k or their savings or investment accounts. It is also a quick and relatively easy way to get a significant sum of money without needing to have spotless credit.

If you do not want to get ripped off by a mortgage broker, loan officer or a lender, it will probably be a good idea to visit savebigonhomeloans.com to get more information on the smart way to shop for a home loan.

Chris Simons writes articles for Savebigonhomeloans.com. You are welcomed to visit http://savebigonhomeloans.com, for more information on How To Get The Best Deal On A Home Loan.

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