The India International Exchange (India INX) will soon be introducing gold kilogram contracts, V Balasubramaniam, MD & CEO of the exchange said.

Currently, gold contracts on the exchange are denominated in troy ounces. One troy ounce is around 31.10 grams.

India INX which operates out of the International Financial Services Centre (IFSC) GIFT City, Gandhinagar, has the advantage of housing products across asset classes under its roof.

Balasubramaniam explains with the analogy of the retail revolution what his exchange is trying to do: “Earlier we used to go to a grocer, garment shop or electronic store, but go to a supermarket today. Our exchange is nothing but a financial supermarket where you get all products at one place, seamlessly.

“Normally in an exchange, if you buy product A and sell product B, then you need separate contract notes, separate bank accounts, settlements, arrangements. All of this is netted here and it is a single transaction and we have a portfolio approach to deliver to international investors.” All contracts are settled in US dollars. Along with single stock futures of foreign stocks such as Apple, Google, and Microsoft, among others, the exchange also offers top Indian stocks (21 of them). It has applied to regulators to allow some more and expects to get approval for this soon.

It offers precious metals contracts (gold/silver) as well as base metals (zinc, lead, copper, nickel, aluminium). This is likely to be expanded in the second phase, Balasubramaniam said. The exchange has applied to SEBI to introduce crude oil futures as well as natural gas contracts.

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