BSE signs MOUs with four regional association to promote EGRs.
What is the news:
- Days after receiving in-principle approval from SEBI for launch of Electronic Gold Receipts (EGR) segment, BSE, India’s leading and most diverse exchange, signed MoU’s with the four regional associations from Maharashtra and Tamil Nadu.
- These associations include Thirunelveli Gold Silver Diamond Jewellery Traders Association, Nanded Sarafa Association, Saraf Suvarnkar Sangthna Pusad, and Ghadchiroli Zila Sarafa Association.
- Together these associations represent over 1,000 members involved in jewellery and bullion trade.
About MOU:
- These MoUs are aimed at providing impetus for the growth and development of commodities segment in general with an impetus for the proposed EGR market.
- Apart from knowledge sharing and research, the MoU will help standardise EGRs for Indian markets at the regional level and enhance transparency in pricing.
- The MoU will also explore potential business and facilitating growth by sharing knowledge and expertise to promote the launch of the India International Bullion Exchange at GIFT city IFSC.
What the officials said:
- Shri Sameer Patil – CBO, BSEsaid “Via these MoUs, BSE and the associations, as well as the stakeholders they serve, will be able to capitalize on the synergies, knowledge and expertise to support innovations and development in spot trading for gold.
- The EGR segment will benefit as it will lead to greater assurance in the quality of gold supplied, efficient price discovery and transparency in transacting.”
- Shri TAK.M. Kombiah Pandian, President of Thirunelveli Gold Silver Diamond Jewellery Traders Association,said “the MoU will help over 140 members mitigate price risks of gold and procure gold of the highest quality.”
- Shri Sudhakar Gopinathrao Tak, Secretary -Nanded Sarafa Association,said “We have been discussing on ways to facilitate the growth and development of bullion, gems and jewellery sectors in India and I am happy that today we are signing this MoU with BSE.
- Shri Sandip Jilhewar, President – Saraf Suvarnkar Sangthna Pusad,said, “We are very happy to sign the MoU with BSE, surely our business will grow with the help of BSE Gold Hedging and other tools.”
- Shri Ratnakar Bogojuwar, President-Ghadchiroli Zila Sarafa Association,said, “It is a matter of pride for our association to associate with BSE, it’s a need of the hour to protect our business from risk through gold hedging. It is an appeal to all Jewellers associations all over India to take advantage of this facility by signing MoU with BSE.”
- BSE is confident that with these partnerships it will be able to play a transformative role in developing a vibrant gold exchange in both the domestic and international zone, via EGR and India International Bullion Exchange (IIBX).
About BSE:
- BSE Limited, also known as the Bombay Stock Exchange(BSE), is an Indian stock exchange located on Dalal Street in Mumbai.
- Established in 1875 by cotton merchant Premchand Roychand, a Rajasthani Jain businessman, it is the oldest stock exchange in Asia, and also the tenth oldest in the world.
- CHAIRMAN – Vikramjit sen
- The BSE is the 9th largest stock exchange with an overall market capitalisation of more than ₹276.713 lakh crore, as of January 2022.
- BSE, India’s leading and most diverse exchange, is the market leader in the bullion ‘options in goods’ segment and only exchange to have deliveries executed in Gold, Gold Mini and Silver 30 kgs contract.
- BSE is also India’s first exchange to complete deliveries of Gold under BSE -BIS India Good Delivery Standard, supporting the Prime Minister’s vision of “Make in India” and “Atmanirbhar Bharat”.
RECENT RELATED NEWS:
BSE gets Sebi’s in-principle approval to introduce EGR
- Capital markets regulator Sebi has given in-principle approval to BSE for introducing Electronic Gold Receipt (EGR) on the stock exchange’s platform. For final approval for the introduction of EGR segment, the exchange has been advised to submit additional information, according to a regulatory filing on Thursday.
- Sebi, in January, came out with a framework for operationalising the gold exchange, wherein the yellow metal will be traded in the form of EGRs.
- Under the rules, the entire transaction has been divided into three tranches — creation of EGR, trading of EGR on stock exchange and conversion of EGR into physical gold.
- The bourses can launch contracts with different denomination for trading or conversion of EGR into gold.
- The source of supply of the physical gold to be converted into EGR will be the fresh deposit of gold coming into the vaults, either through imports or through stock exchanges-accredited domestic refine .
- A common interface will be developed by depositories, which will be made accessible to all the entities — vault managers, depositories, stock exchanges and clearing corporations.
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