MUMBAI: BSE, India’s premier, and the world’s fastest Stock Exchange have signed a Memorandum of Understanding (MoU) with premier bullion trade and industry associations based in Sangli and Yavatmal in Maharashtra, Amritsar in Punjab, and Ahmedabad in Gujarat. The associations include Sangli Sarafa Association, Yavatmal Sarafa Association, Amritsar Sarafa Association, Shree Choksi Mahajan Association, and Gems and Jewellery Trade Council of India (GJTCI). These associations collectively represent close to 2200 members, engaged in retail sales and trade of bullion.
This MoU aims to facilitate cooperation between BSE and physical markets represented by these trade bodies for knowledge sharing or exchange of ideas, education & training, events as well as to explore areas of mutual benefits to ensure the best interests of jewelers.
Through this association, BSE aims to organize seminars and awareness programs on price risk management for bullion traders and jewelers, and help them shift to more organized forms of trading. Awareness about effective hedging tools such as derivatives contracts, including futures and ‘options in goods’ to enable jewelers to face a volatile market would also be provided. The ‘options in goods’ contract offered by BSE makes it extremely beneficial for jewelers and bullion dealers, who can not only hedge their price risk but also avail delivery on expiry of the contract.
Shri Sameer Patil, CBO of BSE said “Joining hands with esteemed trade associations across India will bring expertise in creating suitable products, build a deep physical network needed in bullion trade and will add transparency in the domestic bullion derivatives markets. This engagement would benefit all market participants in trading, hedging, and seeking delivery in Indian Bullion Derivatives market.”
“The MoU with BSE gives the Sangli Jilha Saraf Samiti a lot of scope for expanding in the digital format in the future and offers a vision for the betterment of our Association’s members. All the best to team BSE,” said Shri. Jitendra Pendurkar, President, Sangli Jilha Saraf Samiti.
Yavatmal Jila Sarafa Association said, “We are very happy to associate with India’s leading stock exchange – BSE, with an MOU. It has given us a new direction to trade by opening a market that is connected to the rest of India, and enables us to hedge our price risks.”
Speaking on the association, Shri Sunil Chopra, General Secretary, Amritsar Sarafa Association said, “Amritsar Sarafa Association is confident that the collaboration with BSE widens the scope for the local gold industry, as it helps members receive updated trends and developments of the gold industry with the dissemination of latest information and webinars with industry experts. We thank BSE for providing us an opportunity and look forward to a collaborative partnership.”
Shri Chinubhai Ambalal Chokshi – President, Shree Chokshi Mahajan Association, said, “Shree Chokshi Mahajan, a 125 years old Association having more than 220 Registered Members dealing in Bullion is delighted to sign an MOU with BSE for the betterment of bullion trade. We are sure that this MOU will be fruitful to both our organizations and help our Members dealing in Physical Bullion markets to increase their reach, hedge their positions, and protect their interests.”
On the importance of this collaboration, Shri Shantibhai Patel, President at Gems and Jewellery Trade Council of India said, “Gems & Jewellery Trade Council of India, a 20 years old Trade body with more than 1,250 Lifetime Members directly or indirectly dealing in Bullion is privileged to be associated with BSE – the Oldest Exchange of Asia & an esteemed institute of capital markets in India. We are confident that this MOU is in the best interest of BSE & GJTCI. BSE’s Terminal Network across the Country will create new avenues for our members to trade and take physical deliveries if required.”
BSE, India’s leading and most diverse exchange, has received extremely positive responses from all stakeholders for these contracts. It is the market leader in the bullion options segment, with turnover registering highs of INR 5,010 crores on July 29, 2020. The exchange also 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”.
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