Page 35 - Bullion World Volume 03 Issue 07 July 2022

Bullion World | Volume 2 | Issue 07 | July 2022

Can you explain in detail about meet the requirements standards will on this process, the plan is to
BSE- BIS India Good Delivery be accepted by all the stakeholders introduce denominations as low as
standards for gold? in the global trade of gold and silver 1 Gram, and maybe even lower, if
bars. there is a requirement.
Good delivery working system
is a controlled working system Accordingly, BSE became India's first How robust is the option in goods
surrounding the global trade of gold exchange to comply by India Good delivery framework for gold in
and silver bars. Refiners of gold and Delivery Standard on its commodity the exchange?
silver bars are assessed and certified platform. By promoting Indian BSE has seen delivery both in BIS &
based on their capability to produce standards, BSE aimed to create LMBA standards. The entire physical
gold and silver bars for good delivery linkages between bullion financial delivery process is seamlessly
as per the specified guidelines set and physical markets, to reduce completed at the exchange
out by the certifying agencies. dependency on imports and lower designated vault in Ahmedabad,
disparity between domestic prices Gujarat. BSE has completed seen
BSE is a steadfast supporter of
Government Initiatives and Vision and international prices. deliveries in 19 expiries since launch
of "Make in India" and "Atmanirbhar What is the standard of the contract i.e., since June-2020.
Bharat" of a self-reliant nation. Under denomination set for gold bar BSE's seamless trading platform,
this initiative, the Bureau of Indian delivery? integrated with a robust delivery
standard (BIS) notified standards framework for 'options in goods'
Based on our interactions with
- IS 17278: 2019, for delivery of contracts have proved extremely
the Bullion market, the standard
gold and silver. The notifications beneficial and cost efficient for
denominations preferred are 1KG
set the standards for purity, form market participants.
and 100 Grams.
and provenance of gold and silver On exercise, option contract shall be
bars and the way in which they are Does the exchange plan to settled through delivery of goods.
manufactured, traded, and delivered. introduce lower denomination?
™ All option contracts belonging
This standard prescribes the In our endeavor to widen and to ‘CTM’ option series shall
technical requirements for good deepen the Bullion ecosystem, the be exercised only on ‘explicit
delivery and the refiners will have to vision is to reach every stakeholder. instruction’ for exercise by the
produce the refined gold and silver All of BSE’s initiatives are based long position holders of such
bars according to this specification on internal research, stakeholder contracts.
and guidelines issued by the consultations, physical market ™ All In the money (ITM) option
certifying agencies. The bars which outreach and feedback. Yes, based
contracts shall be exercised

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