Delivery of Gold in Demat form in MCX

[ynandwan]

Hi
Is it possible to take delivery of gold and silver in demat form on expiry of a long futures contract traded on MCX? If yes, what are the charges, taxes involved? Do I have to pay some extra charges to the custodian as carrying cost? I am interested in doing calendar spread trading and if required, won't mind taking the delivery in near month and deliver the same when the mid month sell contract expires.. Which companies/banks act as custodians for commodities?

Thanks!

 

[comm4300]

Hi
Is it possible to take delivery of gold and silver in demat form on expiry of a long futures contract traded on MCX? If yes, what are the charges, taxes involved? Do I have to pay some extra charges to the custodian as carrying cost? I am interested in doing calendar spread trading and if required, won't mind taking the delivery in near month and deliver the same when the mid month sell contract expires.. Which companies/banks act as custodians for commodities?

Thanks!

delivery in DEMAT form not supported by MCX. Delivery in physical form possible.

 

[ynandwan]

Thanks comm4300 for your reply. I appreciate it.

I checked on MCX website as well - it seems that they are also promoting delivery of warehouse receipt in demat form - Have a look at -

http://www.mcxindia.com/marketoperation/dmat@mcx/[email protected]

Even if you get a physical receipt, you may get it converted to demat form.

But I am still not sure about the warehouse charges that may apply. Any idea about that? Also, would I have to pay Sales Tax when I take delivery?

 

[ynandwan]

Have a look at delivery doc for silver -
http://www.mcxindia.com/marketoperation/delivery/productguides.htm

It says -

Electronic Holding of Silver

Silver can delivered in electronic form also. Physical delivery can be converted into demat mode or vice versa. A depositor/buyer seeking to convert the physical delivery into demat shall submit form as per the Annexure 8 and deposit the same with vault receipt / allocation letter to the demat department.

Direct facility of Converting Physical Warehouse Receipt into Electronic Form

Member or their respective constituents can opt for receiving the payout directly in electronic form, by submitting duly filled undertaking as per Annexure 10 and a request letter as per Annexure 11

 

[san77s]

Hi ynandwan,
I also have the same query you put in this thread. Two days back MCX launched new contract namely SILVER1000. We can take this one K.g. Silver in Physical and DEMAT form. In MCX website they note down some 30 D.P's for their preferred DP.
Seniors if any of you know about this process please let me know it and shall we use our existing Equity DP for this or have to open a separate DP for this ?

Regards,
Saravanan