These contracts are available for trading during the entire year and will be settled by the compulsory delivery mechanism. On account of persistent market demand and keeping in mind the fact that India has very high imports of bullion, NCDEX has now introduced 2 new bullion contracts, a top NCDEX official said.
The final settlement price for gold contracts will be calculated on the last trading day based on international spot prices and at RBI reference rates. The international spot price will be added by as one US dollar bank premium and then will be multiplied by 32.15 to calculate the equivalent of the per kg price from the value per ounce. The limit of the daily price fluctuation will be (+ or -) 4% for gold and (+ or -) 6% for silver.