The Multi Commodity Exchange of India (MCX), the country's largest commodity derivatives bourse, launched the 'Silver 100' futures contract on Monday, June 1, 2026. According to an MCX circular, the new product is specifically designed to expand participation in silver trading by retail investors and small businesses through smaller-ticket exposure. The contract commenced trading with expiry contracts available for June, July, August, September, October and November 2026. As reported by Rediff Money Desk, this launch enables retail investors and small jewellers to gain exposure to silver in quantities as low as 100 grams, expanding access to a market previously dominated by larger institutional players. The launch comes as silver prices were down by a tad as uncertainty persisted over a ceasefire extension in the Middle East that could reopen the Strait of Hormuz and ease concerns over inflation.
The Silver 100 contract features a trading unit of 100 grams with price quotations based on 10 grams and quoted ex-Ahmedabad, inclusive of import duty and customs levies but excluding GST and other local taxes. As reported by MCX, the contract symbol is 'SILVER100' and trading will take place Monday through Friday between 9:00 am and 11:30 pm/11:55 pm. The minimum price movement (tick size) is ₹1 per 10 grams, while the maximum order size is 600 kg and the initial margin requirement is 10% or SPAN margin, whichever is higher. The smaller denomination is designed to reduce capital requirements for small and medium enterprises (SMEs) and retail participants, while offering quality-assured physical delivery with transparent making charges at contract expiry.
Silver 100 contracts will be compulsorily settled through physical delivery with Ahmedabad designated as the delivery centre through MCX Clearing Corporation-accredited facilities. According to MCX, the delivery unit is fixed at 100 grams, making it suitable for jewellers and smaller market participants. Only silver bars with 999 fineness purity, compliant with IS 2112:1981 standards will qualify for delivery, sourced from LBMA-approved suppliers or refiners approved by the exchange. The staggered delivery tender period covers the last three trading days including expiry day, with all open positions moving into delivery settlement on expiry. Clearing and settlement for the contracts will be handled by Multi Commodity Exchange Clearing Corporation Limited (MCXCCL).
Praveena Rai, Managing Director & CEO of MCX, stated that the Silver 100 Futures contract helps businesses protect against price volatility and allows local jewellery businesses to hedge or take delivery in quantities aligned with inventory needs. As reported by Rediff Money Desk, the contract was developed in response to market feedback from industry participants and will enable retail participants to invest in silver in smaller quantities while trading through a secure regulated exchange framework. This launch expands MCX's silver derivatives portfolio, which currently includes silver futures contracts of 30 kg, 5 kg and 1 kg, alongside silver options contracts in 5 kg and 30 kg monthly tenures. The exchange has also issued a separate circular revising its good delivery norms for silver, inviting domestic refiners to be empanelled, a move aimed at reducing India's dependence on silver imports and boosting domestic recycling.
MCX has prescribed a multi-layered daily price limit structure with an initial 4% price band, which may be relaxed to 6% without a cooling-off period if breached. If the 6% limit is crossed, trading will pause for 15 minutes before expanding to 9%. If international silver prices move beyond this threshold, the exchange may further relax limits in increments of 3%. The final settlement price will be determined based on Ahmedabad spot prices for 999 purity silver (1 kg) proportionately converted into 100-gram value. The contract adds to MCX's existing silver futures lineup of 30 kg, 5 kg and 1 kg contracts, and monthly options in 30 kg and 5 kg denominations.
