NSE To Roll Out 10-Gram Gold Futures From 16 March

In a big move for the Indian bullion market, the National Stock Exchange (NSE) is launching a new 10-gram gold futures contract. Trading in these contracts will start from 16 March, 2026. This announcement comes after the exchange got the green light from the Securities and Exchange Board of India (SEBI).

This new product can be a great fit for smaller investors. Often, big gold contracts are just too expensive for general people. By offering these smaller "monthly series" contracts, the NSE is making it much easier for everyone to trade gold.

What Are The Main Details Of The Contract?

The NSE circular lists all the technical facts the investors need to know. The contract will trade under the simple symbol GOLD10G. The unit of trading is exactly 10 grams. The "tick size," is set at just ₹1 per 10 grams.

As per the exchange filing, the maximum order size can go up to 10 kg. The prices of the contract are linked to the city of Ahmedabad. This city serves as the main base for both pricing and physical delivery.

When Can Investors Trade These Gold Futures?

Investors can trade these futures from Monday to Friday. The market opens early at 9:00 am. It stays open late into the night. Depending on the time of year in the US, it will close at either 11:30 pm or 11:55 pm.

Every contract ends on the last calendar day of its specific month. If that day is a holiday, it expires one day earlier. As soon as one contract ends, a new one starts the very next business day. This keeps the market moving without any gaps.

How Does The Delivery Process Work?

These gold contracts require compulsory delivery on expiry. It means that if someone holds their position until the end, they must take delivery of the physical metal.

The NSE is very strict about quality. The gold delivered must have a purity of 999. It has to be serially numbered. Also, it must come from a supplier approved by the London Bullion Market Association (LBMA) or the NSE. The final price is based on the Ahmedabad spot price for 995 purity gold. The exchange then converts that number to match the 999 purity standard.

To keep things safe, there is a daily base price limit of 6%. If prices move too fast and hit this wall, trading stops for 15 minutes. This "cooling-off" period helps the market stay calm. After that, the limit can go up to 9%. This system protects traders from sudden, wild swings in the global market.

Initial margin will be determined based on volatility or SPAN, whichever is higher. There can be an extreme loss margin of 1%. In the case of extreme volatility, additional or special margins may be levied.

The maximum allowable open position limit for collective traders is set at 50 metric tonnes or 20% of the market-wide open position, whichever is higher. For individual traders, this limit is 5 metric tonnes or 5% of the market-wide open position, whichever is higher.

The delivery pay-in will take place by 11:00 am on the next working day after expiry (E+1), excluding weekends and trading holidays.

Also Read - Gold, Silver May Extend Rally On Global Trade Uncertainty

Investor Takeaway

NSE Gold Futures may provide opportunities for investors to take positions based on movements in gold prices. However, as these contracts will have a monthly expiry, investors should be aware of the associated risks before participating.

Source:

CNBC TV18

The Economic Times