The Hindu : Business : Altos launches structured commodity derivative

Online edition of India's National Newspaper
Friday, Dec 17, 2004

Business

Business

Altos launches structured commodity derivative

By Our Corporate Reporter

CHENNAI, DEC. 16. Altos Advisory Services, engaged in the business of commodity broking and advisory services in the global and domestic markets, has announced the launch of a structured commodity derivative `Derivative-based gold accumulation programme', in tie-up with Multi Commodity Exchange of India (MCX).

Addressing presspersons here today, S. J. Suresh Kumar, COO of the company, said the structured commodity derivative functioned as a savings vehicle whereby customers invested money at regular intervals, regardless of changes in gold price. Investors can make use of the current MCX derivatives in gold to create a good long-term gold investment discipline by themselves.

One can buy futures at five per cent of the value of current price of gold. The remaining 95 per cent can be retained at a deposit-linked account of Altos' partner banks and used for marked to market profits/losses. When the contract is nearing expiry, a roll over option is offered by which the position is rolled over to next contract.

According to Premanand, CEO and Managing Director of Altos Advisory Services, the company would offer the option of accumulating gold or gold futures electronically. No storage fee would be levied and the transactions were electronically transparent, he said.

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