Indian Regulator Approves Diamond Futures Trading
January 12, 17(IDEX Online) – The Securities and Exchange Board of India (SEBI) has given approval "in-principle" to the Indian Commodity Exchange (ICEX) to start futures trading.
The bourse will start with the launch of three contracts for stones sized 30 cents, equivalent to 0.3 carats, 50 cents, equivalent to 0.5 carats, and 1 carat, it said.
"The futures contract will enhance the global competitiveness of Indian exporters who will be able to create inventory and hedge against price volatility which will improve price competitiveness," said Sanjit Prasad, managing director of ICEX.
The contracts are designed to consider the requirements of market participants and the delivery centre will be the western Indian city of Surat, which polishes around 80 percent of the world's diamonds, said an official with ICEX, who declined to be named, according to a Reuters report.