The exchange said it will launch the NSE approved refiner’s gold bars conforming to BIS Standards from September 1.
Vikram Limaye, MD & CEO of NSE pointed that the refiners who are identified with Standardized Gold help the market in gauging the market standing of the refiner who is involved in the production of standardized gold bars.
“The development of a good delivery standard for any location or country means that there is greater organized trade, formalization and recognition that the refiners in the country are capable of producing world class bullion bars which is acceptable to the larger business community operating in the bullion & jewelry segment,” he said.
While India has been the consuming hub for refined gold, the origins of the bars, however, are from Switzerland, Dubai, Turkey, or South Africa.
“We have predominantly been an importing nation with regard to gold bars and our refining capabilities were negligible even until few years ago,” he said.
“However, recent years have seen the Indian refiners grow leaps and bounds changing the landscape of Indian refining capabilities. Yet, the important piece that was missing in the refining process was the gold standards for delivery,” he added.
He stressed that the development of the Gold Standards for good delivery is an important milestone for not only the refiners but for the entire ecosystem which operate in the Indian bullion & jewelry segment.
Gold Standards are the pivot for ‘good delivery’ on either exchanges or in the OTC markets at various locations. Standardized gold has a different assessment of value in comparison to non-standardized gold, although the gold might be of the same measure, weight, and purity.
The refiners who are identified with Standardized Gold help the market in gauging the market standing of the refiner who is involved in the production of standardized gold bars.
Limaye said he hoped this change will enable the other market participants such as the banks and nominated agencies who play a major role in the import of bullion to participate on the exchange.
“We also hope that the banks will be allowed to participate in the exchange wherein they integrate refining of the scrap/jewelry mobilized under Gold Monetization Scheme,” he said adding that enablers should also be provided for banks to deliver and source the Indian good delivery standard bars on NSE Exchange Platform.