Adding to its existing product basket of 1-carat and 50-cents contracts.
Mumbai: The Indian Commodity Exchange on Thursday launched 30-cents diamond futures contracts, adding to its existing product basket of 1-carat and 50-cents contracts.
ICEX had launched the world's first diamond derivatives contracts in August last year with 1-carat futures contracts, and had subsequently added the 50-cents contracts. With the addition of 30-cents, ICEX now serves a larger chunk of the diamond industry in terms of providing direct hedging facilities, a statement issued here said.
Initially, three monthly futures contracts of 30-cents diamonds will be available for trading on the exchange for July 2018, August 2018 and September 2018. The important quality parameters for diamonds to be traded on the exchange platform are HVS2, triple X with pointed culet and negligible fluorescence.
Since its launch in August 2017, the exchange has witnessed the delivery of 282.39 carats of diamond valuing Rs 8.02 crore, according to the release. Earlier, ICEX had started the facility of delivering the diamond purchased by clients on its platform to their doorsteps and had selected Malca Amit as the logistic partner.
The stones are delivered in tamper-proof covers, with certificates evidencing all details of the same. According to Sanjit Prasad, managing director and chief executive officer, ICEX, in an exchange environment, the physical delivery is effected from its designated warehouse where the client has to come physically to take delivery.
"Such a practice dissuades buyers who belong to locations other than the designated delivery centers. ICEX understood the gap and devised a mechanism wherein the vault agency delivered the diamond bought by the investor at the doorstep of the client," he added.