Commodity bourse ICEX today launched 50 cents of diamond futures contracts and 1,760 lots were traded on the first day.
The three contracts for the delivery in February, March and April 2018 were launched in Surat, Gujarat, the exchange said in a statement.
As per the ICEX data, 1760 lots worth Rs 29.45 lakh were traded today in all three futures contracts. Maximum trade volume was seen in the February 2018 contract.
"Physical market of half carat diamond is almost three times that of 1 carat diamond in India. Launching of 50 cents contract provide direct hedging tool to the large number of stakeholders who are having exposure on this category of diamond," ICEX MD and CEO Sanjit Prasad said.
The delivery and settlement of 50 cents diamond contract shall be similar to 1 carat of diamond. All deliveries of futures contract during tender period or on expiry will be in electronic form only.
Since diamond jewellery like finger ring, earrings and bangles are made of 50 cents, the new contract will help manufacturers to hedge directly their price exposure.
In August, ICEX had introduced first ever diamond futures contract in 1 carat diamond.
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