NSE, IBJA partner to set up bullion spot exchange

The National Stock Exchange of India Ltd. (NSE) has tied up with the India Bullion and Jewelers Association Ltd. (IBJA) to start a domestic bullion spot exchange as per SEBI guidelines.

It is first time that a domestic bullion spot exchange is being set up under the aegis of SEBI. 

Apart from offering a platform to the industry players for conducting spot market bullion transactions, the joint initiative would also provide an opportunity to investors and consumers to directly participate on the exchange.

The proposed business framework would cater to B2B segments of the industry and would also play a role in integrating the value chain participants in the entire bullion ecosystem.

The shareholders will include NSE, IBJA and industry participants (including refiners, bullion dealers, jewelers, banks and overseas suppliers).

IBJA and NSE said they were already in advanced discussions with Industry participants on closing the shareholding structure.

““This exchange shall bring in efficiency as well as transparency in the price discovery of bullion and at the same time offer confidence to the investors about the quality of metal being delivered through the exchange platform,” said Vikram Limaye, MD & CEO, NSE.

“We are also happy to be working with IBJA in this initiative and we are sure that with their expertise and large member base, we will be able to aid the overall development of the bullion spot market as well as witness significant participation from the market players,” he said.

Prithviraj Kothari, National President, IBJA said, “This exchange is conceptualised taking into consideration the industry requirements and shall integrate transactions of bullion dealers, jewelers, retailers and consumers on one single platform.”