Description

NSE modifies quality specifications for Lead, Nickel, and Zinc futures contracts to comply with Quality Control Orders notified by the Ministry of Mines, Government of India.

Summary

NSE has announced modifications to the quality specifications for Lead Futures, Lead Mini Futures, Nickel Futures, Zinc Futures, and Zinc Mini Futures contracts. The changes mandate that goods must conform to IS 27:2023 and bear the Standard Mark under license from the Bureau of Indian Standards. These modifications are being implemented to adhere to Quality Control Orders (QCOs) notified by the Ministry of Mines, Government of India.

Key Points

  • Quality specifications modified for Lead Futures, Lead Mini Futures, Nickel Futures, Zinc Futures, and Zinc Mini Futures
  • Changes apply to all existing and yet-to-be-launched contracts
  • Goods must now conform to IS 27:2023 and bear Standard Mark from Bureau of Indian Standards
  • Modifications implement compliance with Quality Control Orders from Ministry of Mines
  • Partial modification to NSE circular NSE/COM/67724 dated April 28, 2025
  • Only LME approved brands will be accepted for deliverable grades
  • Certificate of Analysis (CoA) from producer required for quality assessment

Regulatory Changes

Lead Futures and Lead Mini Futures:

  • Previous: Only LME approved brands accepted
  • New: Goods must conform to IS 27:2023 and bear Standard Mark under license from Bureau of Indian Standards
  • Quality assessment continues to rely on Certificate of Analysis from producer
  • Additional deliverable grade: LME approved brands with minimum Lead purity of 99.98% or other NSE-approved Lead producer brands

Nickel Futures:

  • Similar quality specification changes to align with IS standards and Bureau of Indian Standards requirements

Zinc Futures and Zinc Mini Futures:

  • Similar quality specification changes to align with IS standards and Bureau of Indian Standards requirements

Compliance Requirements

  • All members trading in Lead, Nickel, and Zinc futures contracts must ensure deliverable goods conform to IS 27:2023
  • Goods must bear the Standard Mark under a license from the Bureau of Indian Standards
  • Warehouse Service Providers (WSP) must rely on Certificate of Analysis (CoA) issued by the producer for quality assessment
  • Only LME approved brands or NSE-approved producer brands accepted for delivery
  • Compliance with Quality Control Orders notified by Ministry of Mines, Government of India is mandatory

Important Dates

  • Circular Issue Date: November 14, 2025
  • Effective Date: November 24, 2025

Impact Assessment

Market Impact:

  • High impact on commodity derivatives segment participants trading Lead, Nickel, and Zinc futures
  • May affect delivery logistics and warehouse operations due to additional IS 27:2023 compliance requirements
  • Potential impact on deliverable brands if they do not carry Bureau of Indian Standards certification

Operational Impact:

  • Members must verify that deliverable goods meet new IS 27:2023 standards
  • Warehouse Service Providers need to implement new quality verification processes
  • Producers must obtain Standard Mark license from Bureau of Indian Standards to qualify for delivery
  • All existing open positions in these contracts will be subject to new specifications

Regulatory Impact:

  • Aligns NSE commodity contracts with Government of India’s Quality Control Orders
  • Strengthens quality standards for metal commodities traded on NSE
  • Enhances consumer protection through mandatory IS certification requirements

Impact Justification

Mandatory changes to commodity contract specifications affecting all existing and future contracts for Lead, Nickel, and Zinc futures to comply with Government of India Quality Control Orders