Description

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

Summary

NSE has modified the quality specifications and additional deliverable grades for Lead Futures, Lead Mini Futures, Nickel Futures, Zinc Futures, and Zinc Mini Futures contracts. The key change requires goods to conform to Indian Standards (IS 27:2023) and bear the Standard Mark under a license from the Bureau of Indian Standards (BIS). This modification is being implemented to adhere to Quality Control Orders (QCOs) notified by the Ministry of Mines, Government of India. The changes apply to all existing and yet-to-be-launched contracts in these commodity categories.

Key Points

  • Quality specifications modified for five commodity futures contracts: Lead, Lead Mini, Nickel, Zinc, and Zinc Mini
  • Goods must now conform to IS 27:2023 and bear the Standard Mark under BIS license
  • LME approved brands will continue to be accepted
  • Reliance on Certificate of Analysis (CoA) issued by the producer for quality assessment
  • Additional deliverable grades maintain acceptance of LME approved brands with specified purity levels
  • Changes align with Quality Control Orders (QCOs) from Ministry of Mines, Government of India
  • Modifications apply to all existing and future contracts
  • Partial modification to chapters 1.15.11, 1.15.12, 1.15.16, 1.15.25, and 1.15.26 of NSE circular NSE/COM/67724 dated April 28, 2025

Regulatory Changes

Lead Futures (99.97% purity):

  • Previous: Only LME approved brands accepted
  • New: Goods must conform to IS 27:2023 and bear BIS Standard Mark; LME approved brands continue to be accepted

Lead Mini Futures (99.98% purity):

  • Previous: Only LME approved brands accepted
  • New: Goods must conform to IS 27:2023 and bear BIS Standard Mark; LME approved brands continue to be accepted

Additional Deliverable Grades:

  • Continue to accept LME approved brands with minimum specified purity
  • Any other producer brand as approved by NSE
  • Quality assessment based on Certificate of Analysis (CoA) from producer

The changes implement Quality Control Orders (QCOs) notified by the Ministry of Mines, Government of India, for Lead, Nickel, and Zinc commodities.

Compliance Requirements

For Members:

  • Note the modified quality specifications effective from November 24, 2025
  • Ensure all deliveries conform to IS 27:2023 standards
  • Verify that goods bear the Standard Mark under BIS license
  • Continue accepting LME approved brands with proper Certificate of Analysis (CoA)

For Warehouse Service Providers (WSP):

  • Place reliance on Certificate of Analysis (CoA) issued by the producer for quality assessment
  • Verify conformity to IS 27:2023 and BIS Standard Mark
  • Accept LME approved brands as specified
  • Accept NSE-approved producer brands as additional deliverable grades

Quality Standards:

  • Lead Futures: Minimum purity 99.97%, conforming to IS 27:2023 with BIS mark
  • Lead Mini Futures: Minimum purity 99.98%, conforming to IS 27:2023 with BIS mark
  • Nickel Futures: Modified quality specifications (specific details in annexure)
  • Zinc Futures: Modified quality specifications (specific details in annexure)
  • Zinc Mini Futures: Modified quality specifications (specific details in annexure)

Important Dates

  • Circular Date: November 14, 2025
  • Effective Date: November 24, 2025
  • Reference Circular: NSE/COM/67724 dated April 28, 2025 (partially modified)

Impact Assessment

Market Impact:

  • Affects all participants in commodity derivatives segment trading Lead, Nickel, and Zinc contracts
  • Changes apply to both existing contracts and all future contract launches
  • May require suppliers to ensure BIS certification compliance
  • LME approved brands continue to be accepted, providing continuity

Operational Impact:

  • Warehouse Service Providers must verify IS 27:2023 conformity and BIS Standard Mark
  • Delivery processes require additional verification of Indian Standards compliance
  • Certificate of Analysis (CoA) from producers remains the primary quality assessment document
  • Additional deliverable grades provide flexibility with NSE-approved producer brands

Compliance Impact:

  • Aligns NSE commodity contracts with Ministry of Mines Quality Control Orders
  • Strengthens quality standards for metal commodities
  • Enhances regulatory compliance with Government of India standards
  • Maintains international acceptance through continued LME brand recognition

Contact Information:

Impact Justification

Affects all existing and future Lead, Nickel, and Zinc futures contracts by modifying quality specifications to align with government Quality Control Orders. Impact is medium as it changes deliverable standards but maintains LME brand acceptance.