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MCX gets Sebi nod for bullion, base metals index futures

Mumbai, Jun 12 (PTI) The Multi Commodity Exchange (MCX) on Friday said it will launch index futures on bullion and base metals indices, which will help deepen the market.

The move will increase participation by mutual funds and arbitrageurs, among a host of other market constituents, it said.

'The exchange has received permission from the Sebi for futures trading on indices like iComdex bullion and iComdex base metals,' MCX said, adding the multiplier will be 50 and the margins have yet to be decided.

'The first expiry of bullion index futures contract will be August while the base metals futures contract will expire in October,' it added.

The index futures will be cash settled, unlike its individual constituents which have to be settled by delivery, the exchange said in a statement.

The bullion index has gold and silver while the metal index has five base metal contracts as constituents, it said, adding that the ticket size for the contracts is Re 1.

The MCX has set minimum margin at 5 per cent and near-month contracts are considered and rollover to subsequent contracts will be considered as the underlying contract's expiry nears.

Index futures on equities like Nifty and Bank Nifty are extremely popular and MCX hopes the launch will attract 'substantial' interest to its platform, which is the largest in the country for energy and metals contracts.

With over 94 per cent market share, MCX runs the country's largest commodity exchange with an average daily turnover of around Rs 32,000 crore. PTI BEN ABM ABM