Sebi, NSE urge banks to source gold from exchange platform for hedging

The exchange will accept gold bars produced by the domestic refiners for settlement of the gold futures contracts traded on its platform

Banks should source gold from the exchange platform and also utilise it for hedging and risk management, Sebi Whole Time Member S K Mohanty said on Friday.

"Time has now come for the banks to come forward and source gold from the exchange platform... also do their hedging and hedge risk management on the exchange platform itself.

"Indian gold standard can become an international gold standard when we display good governance and credibility before the international forum," Mohanty said.

He was addressing the digital launch of NSE-approved refiners' gold bars. The Indian refiners' gold will be available from September 1,