Futures Trading of Diamonds Allowed in India

New Delhi: The Indian Government has finally given nod to futures trading of diamonds. According to a notification published by the Ministry of Finance on 27th September, 2016 in the official Gazette of India, the Central Government in consultation with Securities and Exchange Board of India (SEBI) has permitted the regulatory authority to go ahead and initiate the listing of different futures contracts on the Indian commodity exchanges.

It is learnt that three contracts would be available to investors/traders — 1carat (one carat comprises 100 cents), 50 pointer (cents) and 30 pointer of HVS2, one of the largest traded stones. (H in HVS2 stands for colour while SV2 stands for the clarity of the stone). That makes a total of nine concurrent contracts. However, the lot size of each contract will be one cent or one-hundredth of a carat. This will also be called one electronic unit (EUs). The prices will be based on ex-Surat.