NSE, India Bullion and Jewelers Association to soon launch bullion spot exchange

“India is the second largest consumer of gold, and it is the first time that a domestic bullion spot exchange is being set up under the aegis of Sebi,” NSE said in a press release.

This joint initiative by NSE and IBJA will not only offer the much-awaited platform to the industry players for the spot market bullion transactions but also act as a step in the direction of giving an opportunity to investors and consumers to directly participate on the exchange platform, it added.

The shareholding shall have participation from NSE, IBJA and industry participants including refiners, bullion dealers, jewelers, banks, overseas suppliers, funds, FPIs as per regulatory norms.

IBJA and NSE are already in advanced discussions with industry players in closing the shareholder structure, according to the release.

The exchange shall ensure transparency in bullion transactions and the proposed business framework will cater to business-to-business players in the industry while playing a key role in integration of value chain participants in the bullion space, the release said.

“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,” NSE’s Managing Director and Chief Executive Officer Vikram Limaye said.