Page 18 - Bullion World Issue 1 May 2021

Bullion World | Issue 01 | May 2021

MCX creates history

Multi Commodity Exchange of India Ltd. with delivery of
(MCX), the country’s largest commodity
exchange, recently empanelled two
domestic refineries to the good delivery 190 kg Indian
list for the Gold Mini contracts, thereby
taking a historic step by enabling delivery refined gold
of domestically refined gold on its
platform.

MCX HAS EMPANELLED TWO comprehensive MCX Good Delivery MCX Good Delivery Norms are kept at
INDIAN REFINERIES BASED IN Norms for BIS Standard Gold/ Silver, par with international standards, covering
UTTARAKHAND TO DELIVER paving the way for domestic bullion basic eligibility criteria, technical
DOMESTICALLY-REFINED GOLD ON to be accepted as good delivery on qualification audits, financial audits,
ITS PLATFORM. PLEASE TAKE US the exchange platform. Prior to this, continuous compliance requirements
THROUGH THE VISION BEHIND THIS only bullion bars of London Bullion along with responsible sourcing
MOVE AS WELL AS THE PROCESS Market Association (LBMA) accredited guidelines that are aligned with the
LEADING UP TO EMPANELMENT. refiners along with Emirates Gold were OECD. It also comprehends to BIS India
CAN WE SEE THIS STEP IN THE deliverable on the exchange. Good Delivery Standard, IS: 17278.
CONTEXT OF AATMANIRBHAR Currently, two domestic refiners – M/s
BHARAT MISSION? M D Overseas Pvt. Ltd (Rudrapur, The applicant refiners were put through
As the leading Exchange for bullion, it is Uttrakhand) and M/s Kundan Care stringent audits and tests as part of
incumbent upon us to constantly strive Products Ltd. (Haridwar, Uttarakhand) – the screening process defined in the
to benefit India’s bullion and jewellery have been empaneled to the MCX good aforesaid good delivery norms. From the
industry. Our benchmark gold and silver delivery list for Gold Mini (100 grams) first set of applications, the refiners who
contracts not only act as a domestic derivative contracts. cleared the Exchange-set criteria and
price reference for India, but are also met all conditions of the financial as well
used by value-chain participants for This move will also drive market as Technical Qualification audits, were
risk management and delivery. MCX efficiencies by reducing price disparities added to the good delivery list for the
has seen 123 tons of gold and 3847 and further integrate exchange eco- Gold Mini (100 gram) futures and options
tons of silver delivered via the Exchange system with domestic industry by contracts, as per the circular issued on
mechanism. bringing more locally available/ recycled February 4, 2021.
gold of exchange grade. Further, local
Significantly, MCX saw delivery of 190 refiners will be able to derive benefits As we await greater institutional
kg in the form of locally refined Gold by partaking in the efficient transparent participation in the domestic bullion
100 gram bars in the MCX Gold Mini price discovery process. This will also industry, as well as commodity
(100 gram) April contract. Notably, deepen the open interest and make derivatives, this will add to the suitability
the April expiry marks the first delivery the order books even more robust and of our contracts to enable the same.
cycle for domestically refined Gold from liquid. This will further facilitate spot-
empaneled of domestic refiners. futures integration, enable expansion
In pursuit of the Atmanirbhar Bharat of organised bullion trade and enhance
mission, MCX had earlier issued self-reliance as well as transparency.

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