India INX To Introduce Gold Kilogram Contracts Soon

by Vinaya HS on August 18, 2017

in Finance

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The India International Exchange also known as India INX, is soon going to introduce the gold kilogram contracts. As of now the gold contracts on the India INX are in the denominations of the troy ounces where one troy ounce amounts to 31.10 grams.

India INX is a wholly-owned subsidiary of the BSE that started its trading activities on January 16, 2017 and it operates out of the Gujarat International Financial Services Centre (IFSC) GIFT City, Gandhinagar. The exchange, India International Exchange, operates from the International Financial Services Centre (IFSC) GIFT City, Gandhinagar. It has the advantage of the residential products all across the asset classes under its roof. It is the country’s first international exchange to be set up at GIFT City.

The exchange has already started trading in 53 additional single stock and futures contracts, taking the total number of likewise derivatives offerings to 107 on its platform, to view NSE option chain. Also, recently the exchange had commenced trading in 33 new single stock derivatives.

The gold contracts on the India INX which are already achieving the daily average turnover of USD 30 million, the Managing Director and Chief Executive Officer of INX, V Balasubramaniam, says that we have seized the opportunity to further entrench our position in this market by launching the gold KG contract.

Mr. V Balasubramaniam also details the analogy of the retail revolution what the India International Exchange is trying to do. He explains that in the previous scenario, one used to go to the grocer, garment shop or the electronic store, but now we go to a supermarket today as we get everything under one roof. Likewise, he believes to have built up the exchange in nothing but in the way of a financial supermarket where you can get all financial products you need at one single place without any trouble.

To explain further, what happens in an exchange is that if you wish to buy a particular product let’s say X and sell a product Y, then you are expected to have separate contract notes, separate bank accounts, settlements, and arrangements. But under this new concept, all of this is blended here seamlessly. Here, it is a single transaction and we also have a portfolio approach to facilitate the international investors.

In the India International Exchange, all the contracts are settled in US dollars. With the single stock futures of foreign stocks such as Apple, Google, and Microsoft, along with others, the INX also offers top Indian stocks too.

It offers precious and expensive metals contracts of gold and silver too along with the base metals like zinc, lead, copper, nickel, aluminium, and many more. The exchange feels that this will grow even more in the second phase. The exchange has also believed to have applied to the market regulator Sebi to introduce crude oil futures as well as natural gas contracts as the latest legal news points out.

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