The Hindu Business Line : Bullion futures trading launched

THE Union Minister of Consumer Affairs, Food and Public Distribution, Mr Sharad Yadav, on Friday launched futures trading in gold and silver by the National Multi-Commodity Exchange of India Ltd (NMCE).

Speaking on the occasion, the Minister said India was the world's largest consumer of gold and silver, at 800 tonnes and 3,500 tonnes, respectively. On the other hand, there was no mechanism for bullion traders, jewellers or exporters to hedge their market risks, especially following the ban on futures trading in gold in 1962 with the coming into force of the Gold Control Act.

With the NMCE being granted permission to resume futures trading in bullion, Mr Yadav said the country had joined the ranks of the world's best commodity exchanges such as the New York-based Commodity Exchange (COMEX), Tokyo Commodity Exchange (TOCOM) and Shanghai Gold Exchange.

Mr Kailash Gupta, Managing Director of NCME, said that unlike the large contract sizes traded in most international commodity bourses, NMCE had kept the unit of trade and delivery at just 100 gm for gold and 3 kg for silver bar. Trading will take place only in gold and silver with 0.999 finesse.

Further, there will be 7 delivery centres at Chennai, Kolkata, Mumbai, New Delhi, Ahmedabad, Indore and Kochi, where tie-ups with major international banks and logistic companies are being worked out, he added.

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