NCDEX launches bullion futures contracts

Mumbai, November 21, 2006: The National Commodity & Derivatives Exchange (NCDEX) today launched its new gold (unit of trading: 100 grams) and silver (unit of trading: 5 kg) futures contracts in a bid to attract retail participation in futures trading in precious commodities. These contracts would be the addition to the existing gold (1 kg) and silver (30 kg) contracts that are traded on the exchange. The Exchange has launched the new gold and silver futures contracts as retail investors were finding investment in the existing contracts (gold "� 1 kg and silver "� 30 kg) prohibitive. Under the existing gold contract (1 kg) and silver (30 kg) contracts, a retail investor has to put in margin money equivalent to approximately 5% (at current prices: gold 5 % "� 45,710; silver "� 7 % - Rs. 40,000/-) of the contract value.

With the launch of the new bullion contracts, a retail investor can now easily take a position in gold and silver futures contracts by putting in margin money equivalent to 5 % (Rs 4,571 in the case of gold and 7 % Rs. 6,700 in the case of silver) of the contract value.

"Keen retail investor interest has prompted us to launch the new futures contracts in bullion. Moreover, investment in gold, which is the best hedge against inflation and currency depreciation, is a good asset diversification strategy for retail investors," said Mr. PH Ravikumar, MD & CEO, NCDEX.

Mr. Ravikumar pointed out that retail investors can rest assured about the quantity/ quality of gold traded/delivered on the exchange platform as gold certified only by the London Bullion Market Association (LBMA) approved refiners or refiners specified by NCDEX on the settlement day is accepted as good delivery.

NCDEX has accredited vaults for receipt and delivery of gold. Gold will be received and delivered only from NCDEX accredited vaults.

By launching the new bullion futures contracts, NCDEX is seeking to address the 'need gap' arising from lack of transparency in prices and non-assurance of quality for the retail participants.

The advantages of trading in the new bullion futures contracts on NCDEX include: the ability to hold gold in the demat form; low cost of holding gold in demat form; transparency in prices; assurance of quality and purity; and ability to buy and sell Bullion at the click of a button.

About NCDEX

NCDEX is India's leading commodity exchange. It is a national level multi "� commodity electronic exchange promoted by national level well known institutions. NCDEX offers trading facilities to its trading and clearing members located across 550 centers in India and around 825 member's trade over 17,000 terminals. NCDEX provides trading a near real-time spot and futures prices of commodities traded to almost every corner of India. NCDEX has revolutionized the entire system of price discovery in both spot and futures segments.

NCDEX has enabled holdingof commodity balances in electronic form and dematerialized the warehouse receipt to enable physical commodity settlements. NCDEX currently offers a portfolio of contracts of over 50 commodities including commodities in agricultural, bullion, base metals and energy.