BSE widens Bullion reach; signs MoU with Premier Bullion Trade Associations across India on Dhanteras Day
Mumbai, November 13, 2020: BSE, India’s premier and the world’s fastest Stock Exchange has 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 sale 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 jewellers.
Through this association, BSE aims to organize seminars and awareness programmes on price risk management for bullion traders and jewellers, and help them shift to more organised forms of trading. Awareness about effective hedging tools such as derivatives contracts, including futures and 'options in goods' to enable jewellers face a volatile market would will also be provided. The 'options in goods' contract offered by BSE makes it extremely beneficial for jewellers 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 a 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 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 organisations 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 response 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".
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, Almond & 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. ICCL is the only clearing corporation in India to have been granted "AAA" rating by two rating agencies, India Ratings Ltd. (Indian arm of Fitch Ratings) and Care Ratings Ltd. 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 framework issued by the Ministry of Finance, Government of India and SEBI. BSE Investor Protection Fund is responsible for creating Capital markets related awareness among the investor community in India.
India International Exchange (IFSC) Limited (India INX) is India’s first international exchange in International Financial Services Centre (IFSC) located at the Gujarat International Finance-Tec City (GIFT City). India INX is a subsidiary of BSE Limited. The Exchange was inaugurated by Hon’ble Prime Minister of India, Shri Narendra Modi, on Jan 09, 2017 and commenced its operations from Jan 16, 2017.
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