NSE to launch Gold 10 grams futures from March 16 after Sebi approval. Check expiry and other details
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·
Why in news
The NSE is launching a new 10-gram gold futures contract (GOLD10G) starting March 16 following approval from SEBI.
Background
The GOLD10G contract is a compulsory delivery-based contract requiring 999 purity gold. Trading will occur from 9:00 am to 11:55 pm with a tick size of Re 1 per 10 grams and a maximum order size of 10 kg.
Facts for Prelims
- FactGOLD10G: New 10-gram gold futures contract launched by NSE
- FactPurity: Contract requires delivery of 999 purity gold
- PlaceAhmedabad: Designated clearing house facility for gold delivery
- FactTick size: Re 1 per 10 grams with a maximum order size of 10 kg
- FactPricing: Contract is ex-Ahmedabad, inclusive of import duty and customs but excluding GST
For Mains
Q. Discuss how the introduction of standardized gold futures contracts can enhance market liquidity and provide a hedge against price volatility for retail investors.
Dimensions to cover in your answer
- Market depth: Standardized lot sizes (10g) lowering entry barriers for retail participants
- Risk mitigation: Price movement safeguards and position limits to curb speculative volatility
- Logistical integration: Compulsory delivery mechanisms ensuring physical settlement at designated clearing hubs
Keywords: Capital Markets · Derivatives · Liquidity · Price Volatility · Hedging · Market Safeguards
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.