BSE completes three full delivery cycles in gold mini under 'options in goods' contracts

NEW DELHI: Leading stock exchange BSE on Monday said it has executed the third physical delivery of gold mini in 'options in goods' contracts.

The entire physical delivery process was seamlessly completed at the exchange's designated vault in Ahmedabad, Gujarat, BSE said in a statement.

BSE has completed three full delivery cycles in gold mini in 'options in goods' contracts expiring on all three months since its launch.

"We are glad to see wide support and participation from physical market players in the bullion segment and believe that these delivery based 'options in goods' contracts immensely boost price discovery of gold based on domestic fundamentals," the exchange's chief business officer Sameer Patil said.

BSE's seamless trading platform, integrated with a robust delivery framework for 'options in goods' contracts have been proved to be extremely beneficial and cost efficient for jewellers, bullion dealers and other physical market participants. It empowers them to not only hedge their price risk but also avail delivery on expiry of the contract, he added.

BSE launched the first 'options in goods' contracts on gold mini and Silver kg based on spot prices from June 1, 2020. These contracts are converted into physical delivery on expiry.