Multi Commodity Exchange (MCX) has launched 'Silver 100' futures contracts on Monday to enable retail investors and small jewellers to gain exposure to silver in quantities as low as 100 grams. The move aims to widen access to a market previously dominated by larger institutional players.
MCX's existing silver futures lineup consists of 30 kg, 5 kg and 1 kg contracts, and monthly options in 30 kg and 5 kg denominations. The Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) will be responsible for handling clearing and settlement of the new contract.
"The Silver 100 futures contract helps businesses in India's silver industry protect themselves against price volatility," said Praveena Rai, Managing Director and CEO of MCX in a regulatory filing.
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"Local jewellery businesses can now hedge or take delivery in quantities that are better aligned with their inventory needs." The smaller denomination is designed to reduce capital requirements for small and medium enterprises (SMEs) and retail participants, while offering quality-assured physical delivery with transparent making charges at contract expiry.
MCX said the contract was developed in response to market feedback from industry participants. The exchange has also issued a separate circular revising its good delivery norms for silver, inviting domestic refiners to be empanelled, a move aimed at reducing India's dependence on silver imports and boosting domestic recycling.
(with inputs from PTI)
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