India's NCDEX opens new gold delivery centre

By Paul Ploumis 03 Jul 2015 Last updated at 07:57:23 GMT

NEW DELHI (Scrap Monster): India’s online commodity exchange National Commodity & Derivatives Exchange Limited (NCDEX) has announced the launch of fourth gold delivery centre at Hyderabad. Earlier, the exchange had opened such centres in Delhi, Chennai and Ahmedabad. The delivery centres are meant to facilitate settlement of gold forward contracts through ‘Gold Now’ platform.

'Gold Now’ offers an online trading market wherein customers could take delivery of recycled gold originating from NCDEX-certified refineries. The exchange currently has tie-up with four such refineries. The platform offers bullion in 1 kg and 100 gram forward contracts with daily delivery facility. ‘Gold Now’ had received widespread acceptance from consumers and jewellers on account of the transparency of price and standard of gold offered through the scheme.

According to Samir Shah, MD & CEO of NCDEX, the domestic refineries that source gold for the contracts satisfy rigorous quality standards. The recently launched gold forward contracts assure international standards and will help to elevate the efficiency level of the country’s bullion and jewellery industry. ‘Gold Now’ platform is aimed to reduce the country’s over-dependence on imported gold by bringing household gold into circulation. Moreover, it has brought much-needed clarity into the way gold is priced in India.

The exchange also announced that it plans to launch two more gold delivery centres in Mumbai and Jaipur respectively.

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).