Mumbai: National Stock Exchange of India (NSE) on Tuesday said it has got permission from market regulator Securities and Exchange Board of India (Sebi) to launch copper large futures contract with a trading unit 25 metric ton (MT).
In the international commodity markets, the 25 MT copper futures contract is one of the highest traded contracts and is considered as the global benchmark, the release said.
With the introduction of a similar large size futures contract, NSE aims to provide an onshore hedging platform to large Indian corporates, refiners and various users in the value chain.
NSE managing director and chief electoral officer Vikram Limaye said, “NSE is dedicated to deepen the Indian commodity markets by providing convenient and cost-efficient onshore hedging products. The new copper futures contract has the potential to significantly alter the commodities landscape in India."
The large size contract offering shall be settled by way of physical delivery incorporating state of the art world class infrastructure and global best practices.
NSE is actively exploring various options to popularize this unique offering in order to attract market participants and build liquidity and shall announce a launch date at an appropriate time.