BUSINESS

Futures trading in gold and silver

CHENNAI SEPT. 26. National Multi-Commodity Exchange of India (NMCE) is all set to launch gold and silver futures trading in the first week of October. Addressing presspersons here today, Kailash Gupta, Managing Director, NMCE, said the company had already received permission from Forward Markets Commission, the regulator of commodity exchanges.

With this launch the Indian bullion trading community would commence trading in gold and silver after a gap of 41 years and could make its presence in the international market, Mr. Kailash Gupta said. NMCE would offer the opportunity to the bullion traders to arbitrage with some of the world's best international commodity exchanges, he said.

NMCE had kept unit of trading as well as unit of delivery of gold at 100 grams and would trade only in gold and silver with .999 fineness.

The exchange, which commenced operations in November last year, was now trading in 47 commodities with an average daily turnover of Rs. 150 crores, Mr. Gupta said. The plan was to start futures trading in rice and wheat, he said. NMCE was formed with 75 per cent equity participation from commodity-relevant players in public sector undertakings such as Central Warehousing Corporation and National Agricultural Cooperative Marketing Federation of India (NAFED).

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