ICEX To Commence Diamond Futures Contracts Trading In March
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.