Leading stock exchange BSE on Tuesday said it has joined hands with a bullion trade association in Bihar to strengthen the commodity derivatives market in the country.
In a statement, BSE said it has signed a Memorandum of Understanding (MoU) with the bullion trade and industry association Patliputra Sarafa Sangh, Patna, Bihar.
The association would enable growth and development of value chain participants and enable them to face competition and manage price risks better.
The pact aims to facilitate participation in seminars and various other programmes with mutual understanding to educate the people about the commodity derivatives markets and its benefits and encourage commodity stakeholders to hedge on the exchange.
Besides, Patliputra Sarafa Sangh would assist BSE's initiatives to deepen the understanding of commodity market amongst stakeholders and work together for designing of new products on precious metals' commodities contract.
"We believe this association would enable more participants to come forward and hedge on the exchange as well as build a deep physical network needed in bullion trade," Sameer Patil, CBO of BSE said.Binod Kumar, President, Patliputra Sarafa Sangh said, "the jewellers’ fraternity of Patliputra Sarafa Sangh will be benefited especially the small jewellers will learn the hedging process of gold and can safeguard themselves from volatile prices of gold".