The National Commodity and Derivatives Exchange (NCDEX) in India has announced the launch of new online market for gold trading.
The “Gold Now” is considered to be the first transparent national market for buying and selling gold. The new platform is being launched as part of the “Make in India” campaign by the government.
According to NCDEX, “Gold Now” will accept gold recycled in accredited refineries, a move which is aimed to reduce the country’s dependence on gold imports. The platform will focus on domestic recycling industry, which presently consists of 17 gold refineries. Out of this, four refineries have been approved as Good Delivery, following successful completion of stringent accreditation process carried out by international agencies.
Samir Shah, MD & CEO, NCDEX stated that the “Gold Now” platform is being created at par with international standards. The launch of the new platform will help the gold bullion and jewellery industry to improve its efficiencies. “Gold Now” will initially offer bullion in forward contracts of 1 kilogram and 100 grams. The contracts will have daily delivery facility through T+1 and T+2 settlement system through six selected centres. The six cities where delivery will be initially available are Ahmedabad, Mumbai, Delhi, Kochi, Hyderabad and Chennai.
Last week, NCDEX had launched Gold Futures Contract with the aim of bringing more transparency and credibility into gold pricing in the country. According to the exchange, daily premium or discount will be arrived at, based on an independent, unbiased survey conducted among banks, traders and gold dealers in various cities across the country. The polled premium will connect the gold price in dollars per troy ounce with the wholesale value of kilobars in domestic Indian market.
NCDEX is an online commodity exchange based in India. It provides commodity exchange platform for market participants to trade in commodity derivatives. It is the country’s only commodity exchange promoted by national institutions. NCEDX is regulated by the Forward Markets Commission (FMC).