New Delhi: Multi Commodity Exchange (MCX) launched ‘Silver 100’ futures contract on Monday. This will provide an opportunity to retail investors and small bullion traders to invest in silver in small quantities like 100 grams. This new contract has been added to MCX’s existing silver futures contracts (30 kg, five kg and one kg) and monthly option contracts of 30 kg and five kg. Its ‘clearing’ and ‘settlement’ will be done by Multi Commodity Exchange Clearing Corporation Limited.
“The Silver 100 futures contract will help protect Indian silver industry businesses from price fluctuations,” MCX Managing Director and Chief Executive Officer (CEO) Praveena Rai said in a stock exchange filing.
He said local jewelery businesses can now ‘hedge’ or take supplies in small quantities as per their requirement.
MCX said it has been designed with the aim of reducing capital requirements for small and medium enterprises and retail investors and based on suggestions received from contract market participants. The exchange has also issued a separate circular regarding amendment in ‘good delivery’ standards for silver. In this, domestic refiners have been invited to join the committee. Its objective is to reduce dependence on silver imports and promote domestic recycling.