Multi Commodity Exchange of India (MCX) today announced the launch of its unique and innovative futures contract, GOLD GLOBAL, subsequent to receiving permission from the Forward Markets Commission (FMC). This contract will be available for trade on the Exchange from Tuesday, Jul. 14, 2015.
Gold Global is an international price based contract, exclusive of import premium, customs duty, sales tax/VAT, and domestic market premium among others. The contract has been designed keeping in mind the requirements of refiners, exporters, jewellers, including larger bullion physical market participants, involved in import of gold bars and re-export of jewellery.
P. K. Singhal, joint managing director, MCX said, "While the existing gold contracts on the Exchange are already an established benchmark of price and quality in the Indian bullion markets, we seized the opportunity to further entrench our position in this market by launching the Gold Global contract."
With launch of this futures contract, MCX’s bullion basket offerings will include one more variant i.e. Gold Global (200 grams) apart from the existing Gold (1 Kg), Gold Mini (100 grams), Gold Guinea (8 grams), and Gold Petal (1 gram).
"The Gold Global contract would facilitate hedging by all stakeholders in India's gold value chain, and therefore is a step towards making India's gold market more competitive. Separately, it will also reduce dabba trading, which is rampant especially in the Indian bullion futures market," he added.
Shares of the company gained Rs 20.65, or 2%, to settle at Rs 1,052.65. The total volume of shares traded was 64,320 at the BSE (Monday).