The National Stock Exchange of India Ltd. (NSE) has partnered with the India Bullion and Jewelers Association Ltd. (IBJA) to launch a national spot bullion exchange in accordance with SEBI guidelines.
This is the first time that a national bullion exchange has been set up under the SEBI umbrella.
In addition to providing a platform for industry players to transact in the spot market, the joint initiative would also offer investors and consumers the opportunity to participate directly in the exchange.
The proposed business framework would cater to the B2B segments of the industry and also play a role in integrating value chain participants across the bullion ecosystem.
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 about closing the shareholding structure.
“”This exchange will bring efficiency and transparency in bullion price discovery and at the same time provide investors with confidence in the quality of the metal delivered through the exchange platform,” said Vikram Limaye, Managing Director and CEO of NSE..
“We are also happy to work with IBJA in this initiative and we are confident that with their expertise and large membership base, we will be able to contribute to the overall development of the bullion spot market and witness participation important player in the market,” he said.
Prithviraj Kothari, IBJA National Chairman, said, “This exchange is conceptualized with industry requirements in mind and will integrate the transactions of bullion dealers, jewelers, retailers and consumers into a single platform. .”