Contracts are stated monthly and end on the last calendar day of the contract month. If the last calendar day falls on a public holiday, the preceding working day will serve as the due date.Trading takes place Monday through Friday between 9:00 AM and 11:30 PM or 11:55 PM, depending on U.S. Daylight Savings Time. The finch size is set at Re 1 per 10 grams and the maximum order size is 10 kg.
The quote is ex-Ahmedabad and includes all taxes and duties relating to import duties and customs, but excludes GST and any additional GST related surcharges.
As for price fluctuations, the daily base price limit is set at 6%. If this limit is exceeded, the limit can be relaxed to 9% after a 15 minute cooldown.
In case of significant movements in the international markets, the exchange may further relax the limits in increments of 3% above the maximum permitted limit, with appropriate notice to the market. Margins will be determined based on the volatility category or SPAN, whichever is higher, along with an extreme loss margin of 1%. Additional or special margins may be imposed in the event of increased volatility.
Position limits are also specified. For a member jointly for all customers, the maximum open position allowed will be 50 tonnes or 20% of the market-wide open position, whichever is higher, for all gold contracts combined. For individual customers, the limit is 5 tons or 5% of the market-wide open position, whichever is higher.
The contract is based on mandatory delivery. The delivery unit is 10 grams of pure gold 999, serial number and supplied by LBMA approved or other NSE approved suppliers, accompanied by a quality certificate. The designated delivery center will be a collection center in Ahmedabad.
Delivery payment is made on an E+1 basis before 11am, excluding Saturdays, Sundays and public holidays. The staggered delivery period includes the last three working days, including the due date.
The final settlement price will be based on the Ahmedabad spot price for gold (10 grams) of 995 purity, converted to 999 purity, called at maturity around 5:00 PM. In case of unavailability of the requested spot price due to sudden closure of the physical market, the exchange will determine the final settlement price in consultation with Sebi.
The introduction of a smaller 10 gram gold futures contract is expected to increase the participation of retail and smaller market participants in the commodity derivatives segment, while bringing the contract size more in line with domestic bullion trading practices.
#NSE #launch #Gold #gram #futures #March #approval #Sebi #Check #expiration #date #details