Mumbai — The world’s first diamond futures exchange will begin trading in India on Monday, enabling companies in the largest producer of the cut and polished gems to better hedge price risks. "Indian manufacturers most require this type of financial product," said Indian Commodity Exchange MD Sanjit Prasad. India carries the price risk of holding huge inventories of cut and polished and rough diamonds, he said. The exchange, backed by companies including Reliance Capital and MMTC, will start trading in one-carat/100-cent contracts and will eventually add 50-cent and 30-cent contracts, he said. The futures exchange, which was two-and-a-half years in the making, followed talks with the ministry of finance and the Securities and Exchange Board of India, Prasad said. Indian diamond cutters polished about 14 of every 15 of the world’s gems and imported about 153-million carats of rough diamonds in the financial year ended March 31. Polishers source their gems from De Beers, the world’s b...
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