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Gold July 14, 2020 09:30:38 PM

NSE Approves Locally Sourced Gold Bars for Futures Settlement

Paul Ploumis
ScrapMonster Author
The policy change is likely to significantly benefit domestic gold refiners in the country, sources said.

NSE Approves Locally Sourced Gold Bars for Futures Settlement

SEATTLE (Scrap Monster): The National Stock Exchange (NSE) in India, on Friday, announced the launch of new policy for standard gold delivery. The new standard enables acceptance of domestically refined gold bars for settlement of gold futures contract traded on the exchange’s platform. The ‘NSE Refiner Standards for BIS Standard Gold’ is believed to help domestic refiners who meet specific standards set by the Bureau of Indian Standard (BIS).

Previously, the exchange approved only gold bars assayed by the London Bullion Merchants Association (LBMA) for settling futures contracts on NSE’s derivative segment. Accordingly, only serially numbered gold bars produced by the LBMA approved refiners were accepted for settlements of gold contracts. However, the new policy change allows accepting gold bars produced by Indian refiners adhering to BIS notified standards, said a filing by the exchange.

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Ravi Varanasi, chief business development officer, NSE said that the new move offers a fair chance to the Indian refiners to be part of the exchange settlement framework. It is in line with the exchange’s commitment to inclusive growth of all market participants.

The policy change is likely to significantly benefit domestic gold refiners in the country, sources said.

 

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