The National Stock Exchange (NSE) will launch futures contracts for 10-gram gold bars on March 16, following approval from the Securities and Exchange Board of India (Sebi). The new contracts are designed to broaden retail investor access to the gold market and will feature compulsory delivery, according to an exchange statement.
The contracts, traded in monthly series, will have a trading unit of 10 grams, identified by the symbol GOLD10GYYMMM, where YY represents the year and MMM the month. Expiry will occur on the last calendar day of each contract month, shifting to the preceding working day if the last day is a holiday. Trading hours will run from 9:00 am to 11:30 pm or 11:55 pm, adjusted for US daylight saving time.
The tick size is set at Re 1 per 10 grams, with a maximum order size of 10 kg. Price quotations will be ex-Ahmedabad, encompassing all import duties and levies, but excluding Goods and Services Tax (GST) and related surcharges. The base daily price limit has been established at 6%, with potential relaxation to 9% after a 15-minute cooling-off period if the initial limit is breached. Further adjustments of 3% increments are possible in response to significant international market movements, subject to market notification.
Margin requirements will be determined by either volatility category or SPAN, whichever is higher, plus a 1% extreme loss margin. NSE Clearing may impose additional or special margins based on market volatility. Position limits are set at 50 metric tonnes, or 20% of the market-wide open position, whichever is greater, for members collectively. Individual clients are capped at 5 metric tonnes or 5% of the market-wide open position, whichever is higher.
Delivery of the gold will be mandatory. The contract specifies 10 grams of 999 purity gold, serially numbered and sourced from suppliers approved by the London Bullion Market Association (LBMA) or the NSE itself, accompanied by a quality certificate. Delivery will take place at clearing house facilities in Ahmedabad. Pay-in for delivery will occur on an E+1 basis by 11:00 am, excluding weekends and trading holidays, over a staggered three-working-day period including the expiry date.
The final settlement price will be based on the Ahmedabad spot price for 995 purity gold, converted to 999 purity, polled around 5:00 pm on the expiry day. In the event of a sudden closure of the physical market preventing a polled spot price, the exchange will determine the final settlement price in consultation with Sebi.
The Multi Commodity Exchange of India (MCX) also announced plans to launch similar 10-gram gold futures contracts, slated to begin trading on April 1, 2025, under the symbol GOLD TEN. This move by MCX aims to enhance market access for smaller investors and improve risk management capabilities, particularly as gold prices approach ₹90,000 per 10 grams.