Fungibility Fungibility In economics, fungibility is the property of a good or a commodity whose individual units are essentially interchangeable. For example, since one kilogram of pure gold is equivalent to any other kilogram of pure gold, whether in the form of coins, ingots, or in other states, gold is fungible. Other fungible commodities include sweet crude oil, company shares, bonds, other precious metals, and currencies. Fungibility refers only to the equivalence of each unit of a commodity with other units of the same commodity and not to the exchange of one commodity for another, which is barter. The word "fungibility"
Commodity trading in India is Forward Markets Commission (FMC) which was set up in 1953. As of September 2015 FMC was merged with the Securities and Exchange Board of India, SEBI.After this merger sebi has been ordered to exit many commodity exchanges. Commodity trading in India Commodity trading in India has a long history. In fact, commodity trading in India started much before it started in many other countries. However, years of foreign rule, droughts and periods of scarcity and government policies caused the commodity trading in India to diminish. Commodity trading was restarted in India recently. Today, apart from numerous regional exchanges, India