Commodity Futures Trade – Dimensions of Corporate Social Responsibility [Special reference to Hapur Commodity Exchange Limited (HCEL)]

Author:Vinayaka Tripathia*, Madhusoodan Tripathib, Patanjali Tripathic

Abstract:
Trade includes two important dimensions i.e. Physical trade and Futures trade. Commodity futures trade is an important part of trade as well as futures trade. Commodity Futures Trading in India has a long history of more than a century having active futures markets as early in 1875. “Corporate Social responsibilities (CSR) refer to the businessmen?s decisions and actions taken to reasons at least partially beyond the firm?s direct economic or technical interest.”In broad sense, CSR when comes into action is called corporate social work. Parties concerned directly-indirectly towards which any organization has to do corporate social work are Society, Government, Employees, Customers, Shareholders, Creditors, suppliers, etc. Hapur commodity exchange limited (formerly known as The Chamber of Commerce, Hapur), one of the exchanges from where the Indian commodity futures trade began, was incorporated on October 1923. It provides an independent, transparent and efficient system regarding trading, clearing and settlement. HCEL fulfils its obligation of corporate social work to the parties concerning with him directly-indirectly. There are many ups and downs in last 3 years in following its CSR by HCEL. Towards Society - Its Charity payable in FY 2014-15 was INR 368,661.20. Its festival expenses shows an increase of INR 10,66,832. Towards Government- HCEL sincerely follows its social duty towards government. There is an increase of INR 3,03,812 in “Current tax paid” as well as for “Provision for income Tax” it shows an increase of INR 172,091.00. Towards Customers / shareholders / creditors its Total Guarantee Fund increases by INR 46,67,796.1. Towards Social Audit- HCEL has its own vigilance committee. This is a unique factor. HCEL fulfils its obligation of CSR towards various parties. It seems to be satisfactory. On part of social Audit, after Analysing the Annual Reports of three previous years, it finds that there is not even a single issue comes under vigilance committee. It seems to be non-satisfactory. It is recommended that SEBI should investigate as well as issue guidelines in this context.

Keywords:Keywords: Commodity Futures, Hapur Commodity Exchange Limited, Forward Markets Commission, CSR (Corporate Social Responsibility).

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:1)