BSE’s ‘Atmanirbhar Bharat’ Moment: Completes the country’s first-ever delivery of Gold under India Good Delivery Standard
BSE's seamless trading platform, integrated with a robust delivery framework for 'options in goods' contracts have proved extremely beneficial and cost efficient for jewellers, bullion dealers and other physical market participants.
Mumbai: BSE, India’s leading and most diverse exchange, created history by becoming India’s first exchange to complete deliveries of Gold under BSE -BIS India Good Delivery Standard on its commodity platform, supporting the Prime Minister’s vision of “Make in India” and “Atmanirbhar Bharat”. The exchange executed delivery of Gold to the tune of INR 1.5 crores in the ‘Options in Goods’ framework, marking the fifth consecutive month of deliveries at the exchange designated vault in Ahmedabad, Gujarat.
The refined gold delivered on the exchange platform was produced by Augmont Enterprises Pvt. Ltd. and Parker Precious Metals LLP. In addition to these refineries, M D Overseas Pvt. Ltd. and Sovereign Metals ltd. are also empanelled by BSE to deliver serial-numbered gold bars on the exchange platform.
Earlier, BSE used to accept only serial-numbered gold bars approved by the London Bullion Market Association (LBMA) for the settlement of gold contracts exchanged on the commodity derivatives segment of the exchange. The exchange also executed deliveries of Silver based on LBMA standards under the ‘Options in Goods’ segment, at the exchange designated vault in Ahmedabad, Gujarat.
Commenting on this milestone, Sameer Patil, Chief Business Officer, BSE, said, “The deliveries and acceptance of Indian refined gold shows the trust reposed by buyers and sellers alike on BSE led initiatives. This will facilitate increased participation and widen the array of acceptable gold provided by members for delivery of Bullion on commodity derivatives segment of BSE.”
BSE’s seamless trading platform, integrated with a robust delivery framework for ‘options in goods’ contracts have proved extremely beneficial and cost efficient for jewellers, bullion dealers and other physical market participants. It empowers them to not only hedge their price risk but also avail delivery on expiry of the contract. BSE has received extremely positive response from all stakeholders for these contracts, with commodity derivatives segment registering a high of INR 5,010 crores on July 29, 2020.
BSE thanks the consistent support and active participation of all its members and looks forward to increased volumes in the future.