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National Stock Exchange has made its debut into commodity derivatives with the launch of gold and silver futures on Friday.
The gold (1 kg) contract for delivery in December recorded a turnover of ₹36 crore in the first half of trading session ended at 5.30 pm while in gold mini (100 grams) it was ₹1 crore. The silver (30 kg) contract logged a turnover of ₹8 crore.
The exchange has waived transaction charges for the first three months while its rival BSE, which entered the commodity derivative segment on October 1, has done away with transaction charges for one year.
On expiry of the contracts physical delivery of gold and silver can be taken in Ahmedabad. NSE is also planning to extend delivery centres to major metros.
Vikram Limaye, Managing Director & CEO, NSE the exchange is committed to deepen the commodity markets by providing convenient and cost-efficient onshore hedging mechanism for domestic and global participants.
Investors would be able to trade in multiple asset class on a single platform resulting in capital efficiency. The nationwide trading facility with a robust clearing mechanism would benefit market participants, he said.
NSE intends to focus on key non-agriculture commodities and gradually broaden product offerings to agriculture commodities.
Launching NSE’s commodity derivative segment, SK Mohanty, Whole Time Member, SEBI said NSE should use its research, money and manpower to take commodity trading to the next level by building strong data base.
Ashok Agarwal, President, Commodity Participants Association of India said gold prices discovery and quality certification are done abroad even while India being the largest importer and consumer of gold.
The entry of NSE into commodities market is a step towards realising the Government’s vision to make India an international financial hub, he said.
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