Indian Commodity Exchange Ltd (ICEX) is working on modalities to launch the country's first iron ore futures contract, a top exchange official said.
"We are trying to understand the modalities of innovative iron ore contract, which is a first-of-its-kind in the country," ICEX's Chief Executive, Sanjay Chandel, told PTI here.
"We need to do a lot of groundwork for the said contract, and we are talking to different stakeholders including the regulator, Forward Markets Commission (FMC)," Chandel said.
After receiving regulatory approval, the contract will be launched in two-months, he said.
ICEX, promoted by Indiabulls Financial Services Ltd and MMTC Ltd, offers contracts primarily in metals and energy.
MMTC is India's largest iron ore supplier, handling about 15 per cent of total exports. The company is also the single-largest trader of metals and a large importer and trader of coal.
Going forward, the exchange would launch many more contracts that are unique to the market or are new to the market, Chandel said.
The Indian commodity market has a huge potential to grow manifold, he said.
Chandel also said the trading in gold and silver is progressing well. ICEX last month tied up with the Bombay Bullion Association to increase trade in gold and silver.
The India Commodity Exchange, which started operations in November last year, has registered an average daily turnover of Rs 1,500-2,000 crore per day.
