ICEX To Com­mence Di­a­mond Fu­tures Con­tracts Trad­ing In March

Solitaire - - SPECTRUM -

In­dian Com­mod­ity Ex­change (ICEX), a screen-based on­line de­riv­a­tives ex­change for com­modi­ties, has re­ceived “in-prin­ci­ple” ap­proval from the Se­cu­ri­ties and Ex­change Board of In­dia (SEBI) for com­mence­ment of trad­ing in Di­a­mond Fu­tures Con­tracts.

SEBI’s in-prin­ci­ple’ per­mis­sion comes af­ter Gov­ern­ment of In­dia no­ti­fied di­a­mond as a com­mod­ity for de­riv­a­tives trad­ing on Septem­ber 28th 2016 thus paving the way for con­tract in di­a­monds fu­tures trad­ing.

ICEX plans to launch three con­tracts – 30 cents, 50 cents, and 1 carat – as part of its strat­egy. The ex­change has ini­ti­ated dis­cus­sions with clear­ing banks, vault­ing com­pa­nies and grad­ing agen­cies as part of its prepa­ra­tion to launch the con­tracts once it starts op­er­a­tions. ICEX plans to com­mence op­er­a­tions in March 2017, sub­ject to reg­u­la­tory ap­provals.

“The ICEX di­a­mond fu­tures con­tract will en­hance global com­pet­i­tive­ness of In­dian ex­porters who will be able to cre­ate in­ven­tory and hedge against price volatil­ity, which will im­prove price com­pet­i­tive­ness. ICEX is well equipped with strong tools to pro­vide strong com­pet­i­tive ad­van­tage through this con­tract,” said San­jit Prasad, MD & CEO, ICEX.

Re­liance Cap­i­tal, a part of Anil Am­bani-led Re­liance Group, is the largest in­vestor in ICEX, along with wider and more di­verse set of share­hold­ers.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.