National Stock Exchange of India Ltd (NSE) and India Bullion & Jewelers Association Limited (IBJA) have joined hands to launch Domestic Bullion Spot Exchange as per SEBI guidelines. Both are in advanced discussions with industry participants to close the shareholder structure.
This collaboration not only provides industry players with the much-awaited platform for spot market bullion transactions, but also acts as a step towards allowing investors and consumers to participate directly on the exchange platform.
Vikram Limaye, MD & CEO, NSE said, “We are delighted to announce the Domestic Bullion Spot Exchange. The quality of the metal is being offered through the exchange platform.”
Furthermore, Limaye said, “We are sure that with their expertise and large member base, we will be able to assist in the overall growth of the bullion spot market and also see significant participation from market players.”
Bullion Spot Exchange is expected to ensure complete transparency in bullion transactions executed on its platform. Its proposed framework will cater to the B2B segment of the industry and will also play a vital role in integrating value chain participants across the bullion ecosystem.
Prithviraj Kothari, National President, IBJA said, “The exchange has been conceptualized keeping in mind the requirements of the industry and will integrate the transactions of bullion dealers, jewelers, retailers and consumers on a single platform.”
For shareholding structure, participation will be from NSE, IBJA and industry participants (refiners, bullion dealers, jewellers, banks, overseas suppliers, funds, FPIs, other MIIs, etc.) as per regulatory norms.
India is the second largest consumer of gold, and this is the first time that a domestic bullion spot exchange is being set up under the aegis of SEBI.
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