New Delhi, July 14
INVESTORS can now buy, hold and trade gold in dematerialised form without having to worry about parking it in a vault for its safe-keeping. The Multi Commodity Exchange (MCX), in association with the World Gold Council, has launched a new product - a gold contract that is settled in a week (T+7).
"Within the framework of Forward Contracts Regulation Act and with the support of Forward Markets Commissions, we have started a T+7 gold contract that would result in a weekly delivery bringing much awaited certainty in the gold futures," Mr Jignesh Shah, Managing Director, MCX, said here today.
Mr Sharad Pawar, Union Minister for Agriculture, Consumer Affairs, Food and Public Distribution, launched this product today at the Assocham conference on Commodity Futures Market in India.
Prior to the launch of this product, investors could get exposure of gold through commodity exchanges by only buying gold futures. Now, they can get exposure to gold through a one-week contract, which is closer to a spot market.
Mr Shah said that a Gold passbook would be issued to investors opting for this product. MCX would be linked to National Security Depository Ltd for offering this product.