BSE Executes Physical Deliveries of Gold Under India Good Delivery Standard

New Delhi: Leading stock exchange BSE on Tuesday said it has completed physical deliveries of gold under the India Good Delivery standard in the ‘options in good’ contracts. The exchange executed delivery of gold to the tune of Rs 1.5 crore in the ‘options in goods’ framework, marking the fifth consecutive month of deliveries at it’s designated vault in Ahmedabad, Gujarat, BSE said in a statement.

The ‘options in goods’ contracts on gold mini and silver kg based on spot prices was launched from June 1, 2020. These contracts are converted into physical delivery on expiry.

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 its platform.

BSE said it has become India’s first exchange to “complete deliveries of gold under BSE-BIS India Good Delivery standard on its commodity platform.”

Also, the exchange said it has executed deliveries of silver based on London Bullion Market Association (LBMA) standards under the ‘Options in Goods’ segment.

Earlier, BSE used to accept only serial-numbered gold bars approved by the LBMA for the settlement of gold contracts exchanged on its commodity derivatives segment.

“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,” the exchange’s Chief Business Officer Sameer Patil said.

BSE said its 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.

Source : ET