NCDEX to launch gold coins contract

Written by Reuters | Mumbai, March 28: | Updated: Mar 28 2008, 17:06pm hrs
India's National Commodity and Derivatives Exchange Ltd is looking to start gold coins contracts with an approval from the futures market regulator in hand, a top official said on Friday.

"It (launch of the coins contract) will be soon, but not very soon," said P.H. Ravikumar, chief executive of NCDEX, said.

Ravikumar said that the exchange was working on the plan, with the main aspect of the contract being a sound physical delivery mechanism.

"Those issues have to be resolved," Ravikumar said.

India's Forward Markets Commission said on its website on Thursday it has approved NCDEX's plan to launch 8 gram gold coins contract. The contracts would be for June and December, the FMC site said.

Launch of a gold coin contract would coincide with the huge investment demand being seen in India for gold coins and bars.

World Gold Council figures show the investment segment of gold demand grew by 10 percent in 2007 to 215 tonnes in India, faster than the jewellery segment.