Online commodity exchange National Commodity & Derivatives Exchange Limited (NCDEX) will add three more delivery centers for its 'Gold Now', an online forward trading channel for gold. The exchange has announced Ahmedabad as a delivery center after Delhi and Chennai.
"We are going to add three new delivery centers at Mumbai, Jaipur and Hyderabad in the near future," said Suresh Devani, business head of NCDEX.
NCDEX had launched 'Gold Now' in May this year to facilitate buying and selling of gold for the benefit of jewellers.
This platform allows delivery of gold originating from domestic refineries through recycling. It is offering bullion in 1-kg and 100-gram forward contracts for three centres with daily delivery facility through T+1 and T+2 settlement system.
Devani said, "To make transaction easier and safer, we have accredited four gold refineries in the first phase, which satisfy the stringent financial, technical and customer due diligence standard established by the exchange."
The Gold Now platform will provide an impetus to the domestic recycling industry, which, at present, consists of 19 refineries.
NCDEX has tied up with MMTC-PAMP, Kundan Group, Shirpur Gold Refinery and Edelweiss for the gold forward contracts.
"Approximately 20,000 tonnes of gold is estimated to be lying with Indian households, temples and trusts. If mobilised effectively, this could create a domestic supply of gold while reducing dependence on imports," he said.
Commenting on the importance of Gujarat market, Devani said, "Gujarat is truly the gems and jewellery hub of India. This necessitates the need to offer an exchange traded forward contract in gold with Ahmedabad as the delivery center."