To further expand its gold contracts' footprint in India, Multi Commodity Exchange of India Ltd. (MCX) adds 5 more locations to its delivery centres for old and gold mini contracts. In addition to its earlier centres in Ahmedabad, Mumbai and New Delhi, the exchange has now set up delivery centres at Chennai, Hyderabad, Kochi, Bengaluru and Kolkata.
These delivery centres with its revised deliver and settlement procedures will be applicable to all Gold and Gold Mini contracts expiring from December 2018 and onwards.
MCX was launched in 2003, and has played a significant role in strengthening the physical bullion and the country's jewellery industry by making the gold contract prices a benchmark for India's domestic rates. These MCX gold prices factor-in the movements in international gold price, rupee/dollar rates, import duty and prevailing premium/discount, making contracts provide a comprehensive hedge against the movements in these factors.
The additional centres added will help provide seamless integration between the spot and derivatives market. It will help jewellers, selling at large or small scale, to take physical deliveries of gold through exchange mechanism from their nearest centres.