Markets

BSE signs MoU with Akola-based bullion associations

Our Bureau Mumbai | Updated on August 11, 2020

Aim is to facilitate cooperation between the BSE and physical markets in areas such as knowledge sharing, education and training, events etc

The Bombay Stock Exchange has signed a Memorandum of Understanding with Akola, Maharashtra-based bullion trade and industry associations, Akola Sarafa Association and Akola Sarafa Va Suvarnakar Yuva Sangh.

The associations represent members engaged in the retail sale and trade of bullion. The MoU aims to facilitate cooperation between the BSE and physical markets represented by the two trade bodies in areas such as knowledge sharing, education and training, events and explore areas of mutual interests.

The BSE aims to organise seminars and awareness programmes on price-risk management for bullion traders and jewellers, and help them move to more organised forms of trading. Awareness about effective hedging tools such as derivatives contracts, especially ‘options in goods’ to enable jewellers to face a volatile market, would also be provided. The ‘options in goods’ contract offered by the BSE is beneficial for jewellers and bullion dealers, who can now not only hedge their price risk but also avail the delivery of gold on expiry of the contract.

Sameer Patil, CBO, BSE said joining hands with associations from Akola brings expertise in creating suitable products, create deep physical network needed in bullion trade and added transparency in the domestic bullion derivatives markets.

This engagement would benefit all market participants trading and hedging in the Indian bullion derivatives market, he added.

The BSE had received positive response from all stakeholders for bullion options contracts with turnover registering a high of ₹5,010 crore on July 29. The exchange has completed consecutive deliveries of gold mini under the ‘options in goods’ framework seamlessly at the designated vault in Ahmedabad.

Published on August 11, 2020

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