The India International Bullion Exchange (IIBX) on June 19, 2024, issued the notification regarding the Introduction of Trading in Gold Futures Contracts & Product Specifications thereof.
The following has been stated namely: -
• Members intending to participate in Futures Contracts need to open separate Bank Accounts for Collateral Management, Daily & Final Settlement and for segregation of Client Funds for Futures Contracts viz. Margin Account, Settlement Account and Client Account respectively with any one of the Clearing Banks empanelled with IIBX.
• The Market Participants are requested to note the following restrictions with respect to Physical Delivery of Gold under Gold Futures contracts:
A. Physical Delivery by Market Participants holding Short Positions:
o Delivery of Physical Gold Bars in the Vaults and creation of BDRs thereof is only permitted for Qualified Suppliers.
o Resident Entities cannot settle their Short positions by giving physical delivery.
B. Physical Delivery by Market Participants Holding Long Positions:
o Funds Pay-in from entities in the Domestic Tariff Area (DTA) for Physical delivery of Gold Bars can only be accepted from Qualified Jewelers (QJs) and Special Category Client Banks.
o Resident Entities (Entities in DTA of India) that are not notified of Qualified Jewellers or Special Category Client Banks, are not allowed to settle their long positions by taking Physical delivery of Gold.
[Notification No. 20240619-1]
