NCDEX, a commodity exchange, on Friday, announced the launch of a new national market for gold, with Chennai as delivery centre.
Addressing presspersons here, Suresh Devnani, Head-Business, NCDEX, said the first exchange-traded deliverable gold forwards, called ‘Gold Now’, was an initiative towards encouraging domestic supply of gold by providing an impetus to the gold-recycling industry consisting of 17 refineries in India.
“With the launch of Gold Now national marketplace, we are creating an ecosystem that is on par with international standards which will help the South Indian bullion and jewellery industry improve its efficiencies,” he said.
Under Gold Now, forward contracts in bullion would be available in 1 kg and 100 gram with daily delivery facility through T+1 and T+2 settlement system.
The platform would accept gold recycled in exchange-approved refineries as good delivery.
Mr. Devnani said South India accounted for around 40 per cent of the country’s gold consumption with the share of Tamil Nadu at more than 70 per cent.
This necessitated the need to offer an exchange-traded forward contract in gold with Chennai as delivery centre, he said.
