BSE becomes India's First Exchange to Introduce and adopt India Good Delivery Standards for GOLD and SILVER: BIS IS 17278 :2019
Mumbai, June 11, 2020: BSE, India's leading exchange group has played a prominent role in the growth of India's economy over 144 years. In its endeavour to widen and deepen the Indian capital markets, support the Prime Minister's vision of "Make in India" and "Atmanirbhar Bharat" of a self-reliant nation and commitment of the Government notified standards, BSE has become India's first exchange to adopt India Good Delivery Standard BIS IS 17278 : 2019 on its commodity platform for Gold and Silver deliveries.
The Bureau of Indian standard (BIS) has recently notified standards - IS 17278 : 2019, for delivery of gold and silver, applicable from 28 December 2019 via its notification dated January 15, 2020. The notifications sets the standards for purity, form and provenance of gold and silver bars and the way in which they are manufactured, traded and delivered.
Despite being one of the largest consumers and importers of Gold globally, India does not exert any significant impact in discovery of prices and depends on the international markets for the benchmark price, which is based on London prices. By promoting and adopting Indian standards as defined by Bureau of Indian Standards (BIS), BSE aims to create linkages between bullion financial and physical markets, with an aim to reduce dependency on imports and lower disparity in quality amongst the exchange traded markets, physical spot markets and the consumer markets.
Shri Sameer Patil - CBO, BSE, said: "With this step, BSE wishes to highlight its commitment and priority towards development of the Indian bullion market. We are confident that by adopting India Good Delivery standard, we will ensure trust and reassure purchasers of the purity, form and provenance of precious metals. By conforming to its own Good Delivery Standard, India could emerge as the as the price-setter instead of a price-taker in bullion trade."
Adoption of Good Delivery Standards by BSE has set the basis of bullion markets worldwide with its set of rules describing physical characteristics of gold and silver bars acceptable for settlement and delivery. It also outlines requirements for accreditation of refineries to be included on the Good Delivery List. By promoting Indian refineries and India Good Delivery Standard, BSE wishes to play an active role by mitigating challenges faced by stakeholders in manufacturing, trading, risk management and physical delivery of Bullion in India.
This will go a long way in making Indian Good Delivery Standard synonymous with Good quality and remove the quality discrepancies across various markets in India and bring it in line with the single standard as defined by BIS.
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in Gold, Silver, Copper, Oman Crude Oil, Guar Gum, Guar Seeds & Turmeric.
BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
BSE has set up an Investor Protection Fund (IPF) on July 10, 1986 to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of Finance, Government of India. BSE Investor Protection Fund is responsible for creating Capital markets related awareness among the investor community in India.
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