Brief Overview:
RBI has mandated banks to report all OTC transactions in gold derivatives undertaken by them on proprietary account or on behalf of clients/constituents (“Transactions”), within the territory of India or in IFSC or outside India to the trade repository of CCIL (“TR”).
Technical Details:
The key compliances under the notification:-
1) Transactions shall be reported on the TR before 12:00 noon.
2) All amendments and unwinding of the Transactions shall also be reported.
3) All outstanding and matured Transactions undertaken from 15th April 2024 will have to reported to the TR by 28th February 2025.
4) Additionally quarterly reports of transactions in gold derivatives on exchanges in IFSC and overseas, undertaken by banks or on behalf of their clients/constituents shall be furnished to RBI in the prescribed format.
JC takeaway:
This notification will increase transparency in OTC hedging of gold in domestic and international markets.
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