Mumbai: Multi Commodity Exchange, the country’s largest by turnover, will start From Firday trade in micro contracts in silver, a smaller versions of the exiting futures, aimed at attracting smaller traders and jewellers.
Initially, the new contracts, with lot size of 1 kilogram, will be for delivery in April and June.
“MCX has always taken the lead in developing different contract denominations to accomodate the need of varied market participants. Silver micro is another product for investments and a hedging tool,” said P.K. Singhal, deputy managing director, MCX.
In 2010, silver volume on the exchange was 599.84 tonnes. The existing contracts have lot sizes of 30 kgs and 5 kgs.
The silver appetite of India has rebounded from the low of 699.75 tonnes in 2006, as consumers sought cheaper investment tool, and the Bombay Bullion Association, a trade body, expects imports to be at 2,400 tonnes in 2011.