Just Pay Rs. 900 and Own a Diamond

New Delhi: Your dream to buy diamonds will soon be within approachable range soon. You can now invest in high quality diamonds by investing as little as Rs 900 per month for 30 months, as per a report in the Economic Times.

Paving the way for diamond futures trade, markets regulator Securities and Exchange Board of India (SEBI) has given in-principle approval to Indian Commodity Exchange (ICEX) for commencement of trading in this contract.

ICEX said in a statement it will launch three diamond contracts of 30 cents, 50 cents and 1 carat. It will also initiate agreements with clearing banks, vaulting companies and grading agencies for launch of diamond contracts.

Considering the minimum diamond contracts of 30 cents, which comes at about Rs 27,000 at current prices, the buyer will have to pay Rs 900 per month for 30 months, the ET said.

This is going to be world’s first diamond trading bourse. Under the diamond SIP scheme, buyers will have to open an account with an ICEX broker.

After opening the account, the buyer will have to complete the know-your-client (KYC) process and then deposit some money with the broker.

“The buyer also has to tell the broker the exact date of each month when the broker should buy the diamond (in electronic form) for the buyer,” ET said.

Trading in diamond contracts done through electronic form –demat. This will allow the buyer to purchase even as one cent of the precious stone.

However, the buyers will be able to convert the diamond held in the demat account to physical form only after accumulating 30 cents of it.

ICEX is soon going to launch a systematic investment plan (SIP) for retail buyers to acquire diamond. It has already started mock trading which is expected to go live later this month.