New Delhi, Aug 11 : Stock exchange BSE has signed a Memorandum of Understanding (MoU) with Akola Sarafa Association and Akola Sarafa Va Suvarnakar Yuva Sangh, associations of bullion trade and industry based in Akola, Maharashtra.
These associations represent members engaged in retail sale and trade of bullion.
The MoU aims to facilitate cooperation between BSE and physical markets represented by these two trade bodies in areas such as knowledge sharing, education & training, events as well as to explore areas of mutual interests to ensure the best interests of jewellers.
BSE aims to organize seminars and awareness programmes on price risk management for bullion traders and jewellers, and help them move to more organised forms of trading.
Awareness about effective hedging tools such as derivatives contracts, especially ‘options in goods’ to enable jewellers face a volatile market would also be provided.
The ‘options in goods’ contract offered by BSE makes it extremely beneficial for jewellers and bullion dealers, who can not only hedge their price risk but also avail delivery on expiry of the contract.
Sameer Patil, CBO of BSE said, “Joining hands with Akola Sarafa Association and Akola Sarafa Va Suvarnakar Yuva Sangh brings expertise in creating suitable products, create deep physical network needed in bullion trade and added transparency in the domestic bullion derivatives markets. This engagement would benefit all market participants trading and hedging in Indian Bullion Derivatives market.”
BSE has received positive response from all stakeholders for these contracts and is the market leader in the bullion options segment, with turnover registering highs of Rs 5,010 crore on July 29. The exchange has completed consecutive deliveries of Gold mini on ‘Options in Goods’ framework seamlessly at the designated vault in Ahmedabad, Gujarat.
Disclaimer: This story is auto-generated from IANS service.