BSE signs MoU with bullion trade associations

BSE has signed a MoU with Sangli Sarafa Association, Yavatmal Sarafa Association, Amritsar Sarafa Association, Shree Choksi Mahajan Association and GJTCI

New Delhi: Leading stock exchange BSE on Friday said it has joined hands with five bullion trade associations for strengthening the commodity derivatives market within the country.

In this regard, BSE has signed a Memorandum of Understanding (MoU) with Sangli Sarafa Association, Yavatmal Sarafa Association, Amritsar Sarafa Association, Shree Choksi Mahajan Association and Gems and Jewellery Trade Council of India (GJTCI).

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These associations collectively represent close to 2,200 members, engaged in retail sale and trade of bullion.
The pact aims to facilitate cooperation between BSE and physical markets represented by these trade bodies for knowledge sharing or exchange of ideas, education and training, as well as to explore areas of mutual benefits to ensure the best interests of jewellers.

Through this association, BSE aims to organise seminars and awareness programmes on price risk management for bullion traders and jewellers, and help them shift to more organised forms of trading. Further, awareness about effective hedging tools such as derivatives contracts, including futures and ‘options in goods’ to enable jewellers face a volatile market would will also be provided.

“Joining hands with esteemed trade associations across India will bring expertise in creating suitable products, build a deep physical network needed in bullion trade and will add transparency in the domestic bullion derivatives markets,” the exchange’s chief business officer Sameer Patil said.