MCX To Introduce Silver 100-Gram Futures Contracts From 1 June

By Kotak News Desk
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15 May 2026 at 1:09 PM IST
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Market News
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4m

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Summary

MCX will launch Silver 100-gram futures contracts from June 1, 2026, offering smaller-sized bullion derivatives contracts amid rising precious metal volatility and tighter government controls on imports.

The Multi Commodity Exchange of India Limited (MCX) will launch Silver 100 (100 gram) futures contracts from 1 June 2026, expanding trading options for smaller participants in the bullion derivatives market. The exchange announced the move through a circular issued on 14 May.

The new contracts will be available across multiple expiry months, including June, July, August, September, October and November 2026. MCX said the contracts are being introduced under the exchange’s existing rules and trading framework.

MCX shares closed at ₹3,340.45 on the Bombay Stock Exchange (BSE) on Thursday. At 10:55 AM today, the shares were up more than 2%, trading at ₹3,405.

What The New Contract Offers

The Silver 100 futures contract will have a trading unit of 100 grams, compared to larger silver contracts already available on the exchange. The price quotation will be based on ex-Ahmedabad rates and will include import duties and customs levies, excluding GST and other local charges.

Trading will take place Monday to Friday between 9 am and 11:30 pm or 11:55 pm. The tick size has been fixed at ₹1 per 10 grams.

The exchange has also introduced daily price movement limits. Prices can initially move within a 4% band, which may later be relaxed to 6% and then 9% if volatility increases.

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Why The Timing Matters

The launch comes at a time when the government is tightening controls on precious metal imports. Earlier this week, the centre increased import duty on gold and silver to 15% from 6% in an effort to reduce non-essential imports and contain pressure on foreign exchange reserves amid the ongoing West Asia crisis.

India remains the world’s largest consumer of silver, with demand coming from jewellery, investment products such as coins and bars, and industrial sectors including solar manufacturing and electronics.

Market participants said the smaller-sized contract could attract retail traders and jewellers looking for lower-cost hedging options in a volatile bullion market.

Sources:

CNBC TV18

MCX

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Brokerage will not exceed the SEBI-prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.

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