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Resident Entities allowed to hedge gold price in IFSC’s OTC segment


Resident entities have been given the green light to hedge the price of gold in the Over the Counter (OTC) segment within the International Financial Services Centre (IFSC). The decision, made by the Reserve Bank of India’s Monetary Policy Committee (MPC), aims to offer more options for residents to manage their exposure to fluctuations in gold prices effectively.


In December 2022, resident entities were allowed access to recognised exchanges in the IFSC to hedge their gold price risks. Building on this, they can now also utilise the OTC segment for hedging purposes. This move provides greater flexibility and easier access to derivative products, enabling residents to better shield themselves from the volatility of gold prices.


Meanwhile, the India International Bullion Exchange (IIBX) reported that the highest ever intraday gold volume of 400+ kgs was traded on 7th February, helping it achieve cumulative gold volume of 5.4 tonnes since its inception.




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