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Jaitley launches options trading in gold futures in MCX
New Delhi, Oct 17 (IANS) India’ss largest commodity exchange MCX on Tuesday launched options trading in gold with Finance Minister Arun Jaitley describing it as one of the steps towards formalising gold trade in the country.
“This marks a very important evolution in trading of the yellow metal itself. It hedges all risks by giving traders the option of futures,” Jaitley said after launching the options trade at a ceremony here.
To start with, the options trading will be available on a 1 kg gold futures contract. The contracts will expire in November and in January 2018.
“Indians are great buyers of gold. This new product will be extremely successful,” he said.
The festival of Dhanteras is being celebrated on Tuesday, which people observe by purchase or gift of precious metals like gold and silver.
“I am sure the more it formalises, better it is for consumers, jewellers and those trading in this. That’s in consonance with the business environment for future that we see for us,” Jaitley said.
Commodities and capital markets regulator Securities and Exchange Board of India (Sebi), allowed MCX in August to launch options trading in gold. MCX currently offers futures trade in gold and other commodities.
Depending on the success of the gold options, MCX said it will seek the regulator’s permission for options trade in other commodities like cotton, crude palm oil, silver and copper.
“After 3-6 months, we will decide after looking at the success of the gold options,” MCX Chief Executive Mrugank Paranjape told reporters.
“As per the Sebi rule, options trade is allowed in a commodity which has certain volumes in futures trade. We have 7-8 commodities like cotton, CPO, crude, silver, zinc and copper which qualify,” he said.
According to Paranjape, gold is the first product for options trading allowed by Sebi after 14 years of commodity exchanges in the country.
“Fundamentally, it is an extremely low-cost product. However, as an introductory measure, we are not charging any transaction fee on this product till December,” he added.
“Options would complement the existing array of commodity futures contracts and help in enriching the informational efficiency of the market’s price discovery process. It gives market participants great flexibility to manage risk and achieve their trading objectives,” MCX Chairman Saurabh Chandra said.
He also said that in order to further strengthen the market, NITI Aayog has set up a committee to look into integrating the spot and derivative markets. Another committee set up by the Finance Ministry is looking at ways to transform the gold market.
Finance Secretary Ashok Lavasa and Prime Minister’s Economic Advisory Council Chairman Bibek Debroy were also present at the event.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.