NSE launches new gold standard for delivery

Our Bureau Mumbai | Updated on July 10, 2020

The National Stock Exchange has announced NSE Refiner Standards (NRS) for BIS-Standard gold to be delivered for settlement of the gold futures contracts traded on its platform.

The NRS will come into effective from Friday, it said.

Currently, the NSE accepts serial-numbered gold bars produced by London Bullion Market Association-approved refiners for settlement of the gold contracts traded on the commodity derivatives segment of the exchange.

NSE will now empanel refiners producing gold bars as per Bureau of Indian Standards for delivery.

This initiative is in line with the government’s efforts towards Atmanirbhar Bharat and ‘Make in India’ programme. It will facilitate more participation by domestic market players in the exchange traded deliverable bullion commodity derivatives.

Ravi Varanasi, Chief Business Development Officer, NSE, said the new guidelines offers a fair chance to Indian refiners adhering to the BIS notified standards to be a part of the exchange settlement framework.

The NSE has also laid down detailed guidelines for empanelment of refiners (both quantitative and qualitative), compliance requirements, technical evaluation, process and sourcing audits including a fallback mechanism.

Published on July 10, 2020

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