New Delhi (IANS) The BSE has become the country's first exchange to complete deliveries of Gold mini contracts under BSE-BIS India Good Delivery Standard on its commodity derivatives platform on January 29, 2021.
Even though the BSE had launched India's first 'options in goods' contracts on gold mini and silver kg based on spot prices in June 2020, these contracts were delivered using serial-numbered gold bars approved by the London Bullion Market Association (LBMA). The Gold mini 'options in goods' contracts delivered on Saturday were delivered based on BSE-BIS India Good Delivery Standards in alignment with "Make in India" and "Atmanirbhar Bharat" initiatives.
Commenting on this milestone, Sameer Patil, Chief Business Officer, BSE, said, "The deliveries and acceptance of Indian refined gold in all BSE gold contracts will encourage greater involvement by domestic market players and widen the array of acceptable gold for delivery of Bullion."
The exchange executed delivery of Gold mini to the tune of more than Rs 49 lakhs in the Gold mini 'Options in Goods' framework at the exchange designated vault in Ahmedabad, Gujarat. The refined gold delivered on the exchange platform was produced by Parker Precious Metals LLP.
In addition to these refineries, M D Overseas Pvt. Ltd., Augmont Enterprises Pvt. Ltd. and Sovereign Metals ltd. are also empanelled by BSE to deliver serial-numbered gold bars on the exchange platform.
The BSE's '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.