Mumbai, Jan 9 (IANS) Indian Commodity Exchange (ICEX), a screen-based on-line derivatives exchange for commodities, has received an "in-principle" approval from the Securities and Exchange Board of India (SEBI) for commencement of trading in diamond futures contracts, a statement said here on Monday.
SEBI's approval comes after the government notified diamond as a commodity for derivatives trading on September 28, 2016, paving the way for trade in diamond futures.
Reliance Capital, part of Anil Ambani-led Reliance Group, is the largest investor in ICEX, along with wider and more diverse set of shareholders.
"ICEX diamond futures contract will enhance global competitiveness of Indian exporter who will be able to create inventory and hedge against price volatility which will improve price competitiveness. ICEX is well equipped with strong tools to provide strong competitive advantage through this contract," said Sanjit Prasad, MD and CEO of ICEX.
The ICEX plans to launch three contracts -- 30 cents, 50 cents, and 1 carat (1 carat = 100 cents) -- as part of its strategy, the statement said.
"The exchange has initiated discussions with clearing banks, vaulting companies and grading agencies as part of its preparation to launch the contracts once it starts operations. The exchange plans to commence operations in March 2017, subject to regulatory approvals," it added.
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