MCX launches 'Silver 100' futures to open silver market to small investors

Multi Commodity Exchange (MCX) on Monday launched 'Silver 100' futures contracts, enabling retail investors and small jewellers to gain exposure to silver in quantities as low as 100 grams, expanding access to a market previously dominated by larger institutional players.

The new contract adds to MCX's existing silver futures lineup of 30 kg, 5 kg and 1 kg contracts, and monthly options in 30 kg and 5 kg denominations. Clearing and settlement will be handled by the Multi Commodity Exchange Clearing Corporation Limited (MCXCCL).

"The Silver 100 futures contract helps businesses in India's silver industry protect themselves against price volatility," said Praveena Rai, Managing Director and CEO of MCX in a regulatory filing.

 

"Local jewellery businesses can now hedge or take delivery in quantities that are better aligned with their inventory needs."  The smaller denomination is designed to reduce capital requirements for small and medium enterprises (SMEs) and retail participants, while offering quality-assured physical delivery with transparent making charges at contract expiry.

MCX said the contract was developed in response to market feedback from industry participants. The exchange has also issued a separate circular revising its good delivery norms for silver, inviting domestic refiners to be empanelled, a move aimed at reducing India's dependence on silver imports and boosting domestic recycling.