MCX to Accept Bullion Bars From Indian Refineries

SEATTLE (Scrap Monster): The Multi-Commodities Exchange (MCX)- the largest commodities exchange in India announced plans to accept gold and silver bars from domestic refineries for delivery through its contracts. The acceptance of domestically refined bullion bars is subject to final regulatory approval.

The latest move by the exchange will expand the delivery portfolio, which is currently limited only to the London Bullion Market Association (LBMA) and Emirates gold and silver bars. Furthermore, it will lead to significant jump in delivery volumes of these precious metal contracts.

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According to MCX press release, it plans to include serially-numbered gold and silver bars from domestic refineries that conform to the quality standards of LBMA and Emirates gold and silver bars. The domestic refiners are required to meet the exchange-set criteria from time to time.

Earlier in January this year, the exchange had invited expression of interest from domestic refineries. It has received applications from several refineries. Selected refiners will be asked to submit necessary documentation, which will be followed by detailed screening process comprising audits on financial and sourcing aspects along with an assessment of their assaying and refining capabilities. The shortlisted refiners will be added to the MCX good delivery list.