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INDIA TO BECOME FIRST COUNTRY TO TRADE POLISHED DIAMONDS ON A COMMODITY EXCHANGE

The Indian Commodity Exchange (ICEX) will soon begin to trade in polished diamond futures, becoming the first country to allow anyone to trade in diamonds on a commodity exchange, according to IDEX Online.

 

The plan awaits final approval from the Securities and Exchange Board of India (SEBI), with the formal launch set for March. Sanjit Prasad, managing director and chief executive officer of ICEX, told The Hindu: “There are around 80 diamond site-owners [sightholders] globally and we have got 20 of those on our exchange. Our mock trading saw participation from around 100 people. Once diamond contracts start trading on an exchange, it will become a financial investment product. Diamonds have never been able to become an investment product due to low transparency in pricing”.

 

The government approved the trade in diamonds on the exchange last September, as well as the trade in tea, eggs, cocoa, pig iron and brass.

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