NSE launches refiner standards for BIS standard Gold

On July 10, 2020, the National Stock Exchange (NSE) launched NSE refiner Standards for BIS Standard Gold.

Highlights

Under the new standards, NSE will accept gold bars produced by Indian manufacturers. Till date, NSE accepted only gold bars that were serially numbered by London Bullion Market Association.

Significance

The inclusion of domestic manufacturers will increase the participation of domestic market players. Also, it will enable the manufacturers to facilitate greater participation from domestic traders to buy commodities in exchange of bullion commodities.

London Bullion Market

The market is loosely overseen by Bank of England. The London Bullion Market Association issues sets of rules to deliver gold and silver bars. So far, the NSE has been sticking to these rules. Now, it has launched its own standards facilitating the domestic manufacturers to gain largely.

Month: Current Affairs - July, 2020