Bombay Stock Exchange (BSE) said it has joined hands with two bullion trade associations for deepening the commodity derivatives market in the country. BSE has signed a Memorandum of Understanding (MoU) with Akola Sarafa Association and Akola Sarafa Va Suvarnakar Yuva Sangh.
The pact is aimed at facilitating cooperation between BSE and physical markets represented by these trade bodies in areas such as knowledge sharing, education and training, as well as to explore areas of mutual interests to ensure the best interests of jewelers.
Awareness about effective hedging tools such as derivatives contracts, especially ‘options in goods’ to enable jewellers face a volatile market would also be provided, it said.
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.
“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,” BSE Chief Business Officer Sameer Patil said.
“This engagement would benefit all market participants trading and hedging in Indian bullion derivatives market,” he added.
On August 11, BSE Sensex ended up by 0.59% at Rs 38,407.01.
Source: PTI
