Indian banks to take up forward trading in gold

INDIA - In what is seen as a possible first step in opening up the Indian bullion market, all scheduled commercial banks authorised to deal in gold have been permitted to enter into forward contracts with their constituents (exporters of gold products, jewellery manufacturers, trading houses etc) in respect of the underlying sale/purchase and loan transactions in gold with them.

According to a circular dated October 26, 2002 issued by the Department of Banking Operations and Development of the