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India Bourse to Lure Investors With Small-Size Copper Contracts
Jul 16,2010 08:53CST
industry news

July 15 (Bloomberg) -- India's National Spot Exchange Ltd., the nation's biggest bourse for trading physical gold, plans to offer contracts in small denominations in copper and nickel to lure individual investors, a company official said.

The bourse will list contracts of 1 kilogram (2.2 pounds) each starting mid-August, adding to mini-sized contracts in gold and silver, Managing Director Anjani Sinha said today. The new products may generate a turnover of at least 150 million rupees ($3.2 million) a day, he said.

The Multi Commodity Exchange of India Ltd. and the National Commodity & Derivatives Exchange Ltd., the nation's biggest such bourses, only trade futures in non-ferrous metals such as copper, nickel and zinc, precluding individual investors from buying and selling the commodities in the physical form.

"Retail investors have thus far not been able to participate in the non-ferrous metals market," Sinha said at a conference in Mumbai. "We are focusing on the most volatile metals and will expand the list in the future."

The exchange will partner Vedanta Resources Plc for supply of copper that may be delivered to investors who seek delivery, and nickel will be imported and stored as collateral for the metal sold, Sinha said.

The National Spot Exchange is 99 percent owned by Financial Technologies India Ltd., founder of the Multi Commodity Exchange, the world's second-biggest bullion bourse. The exchange may add 15 commodities, including zinc, to the 24 offered now, he said.

The value of trade on the exchange may more than double to around 2 billion rupees a day by March next year from about 600 million rupees now, Sinha said.

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