Page 36 - Bullion World Volume 03 Issue 07 July 2022

Bullion World | Volume 2 | Issue 07 | July 2022

By advocating our commitment
and priority towards development
of the Indian bullion market, the
acceptance of Indian standard gold
has ensured trust of purchasers of
the purity, form, and provenance of
domestic sourced Bullion.
From a jeweler point of view how
does your exchange place itself
as a cost efficient and robust
price discovery platform to take
delivery against goods in option
contract for gold?
BSE offers significantly greater
convenience for investors and
automatically, unless ‘contrary the international market for the
traders, who can trade in all asset
instruction’ has been given by benchmark based on London prices.
categories from a single account,
long position holders of such By conforming to its own Good
reaping benefits arising from
contracts for not doing so. Delivery Standard, India is in the
enhanced competition across all
process to soon emerge as the as
™ All Out of the money (OTM) categories. BSE has, as I detailed
option contracts, except those the price-setter instead of a price- earlier, continuously endeavors
belonging to ‘CTM’ option series, taker in bullion trade. This is backed to create deeper markets with
shall expire worthless. by facts. lower spreads and cost-effective
In recent years, India has emerged
™ All exercised contracts within an transaction charges.
option series shall be assigned as the fourth largest recycler in the This has enabled market participants
to short positions in that series world and the country has recycled to not only hedge their price risk
in a fair and non-preferential 75 tonnes in 2021, according to a but also avail delivery on expiry of
manner. World Gold Council (WGC) report
titled 'Gold refining and recycling'. the contract, benefitting the entire
What is the average volume The report notes that from 300 spectrum from jewellers, dealers,
of gold delivered through the tonnes in 2013, India's gold refining and traders.
exchange through option in capacity increased by 1,500 tonnes We also offer BOW (Bolt Plus on
goods? (500 per cent) in 2021, and there Web) software free of cost to market
Since the launch of options contract, was a transformational change in participants. BOW is a powerful
BSE has executed seamless delivery the gold refining landscape in the real-time trading solution provided
in almost every expiry. So far, country over the last decade. by BSE Tech Infra Services Pvt. Ltd.
the exchange platform has seen India has potential to emerge as The application is available as a
deliveries in almost all contracts in a competitive refining hub if the hosted solution and allows the user
gold mini options contract . bullion market including exchanges to watch real-time market prices and
Has the delivery and acceptance promotes responsible sourcing, execute orders in multiple exchanges
of Indian refined gold product exports of bars and consistent and markets instantaneously.
facilitated greater domestic supply of dore or scrap. Domestic Can you explain how India Good
participation if so, can you recycling market, driven by local Delivery will integrate exchange
elaborate on it? rupee prices and economic cycle, ecosystem with the domestic
is relatively less organized but physical bullion industry
Despite being one of the largest
can gain support if Exchanges
consumers and importers of Gold The implementation of IGDS has
promote through enhanced liquidity,
globally, India did not exert any definitely boosted the organized
in addition to initiatives such as
significant impact in discovery scrap market as it allows refineries
revamped Gold Monetization
of prices and depended on to aggressively source scrap in
Scheme.

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