The National Commodity and Derivatives Exchange Limited (NCDEX) is launching Gold and Silver International futures contracts on the exchange on Monday, December 29, 2008.
According to a press statement issued from NCDEX, these contracts named Gold International and Silver International can be bought and sold in lots of one kg and 30 kg respectively. The contract size has been defined keeping in view the Indian consumer and the recent price trends. These contracts will be physically settled at Ahmedabad. Contracts would be settled on the basis of international prices in rupee denomination.
These contracts expire on the last trading day of the month prior to expiry of the corresponding international bullion futures contract. Settlement occurs on expiry at Import parity costing. Delivery logic is based on Intention matching.
With the introduction of futures market in India, NCDEX had started offering contracts in Gold and Silver. It currently offers futures trading in 1 Kg gold & 30 Kg Silver contracts. These contracts are available for trading during all 12 months of the year and are settled by compulsory delivery mechanism. On account of persistent market demand and keeping in mind the fact that India is a big importer of bullion, NCDEX has now introduced these new contracts, the statement said.