NSE, IBJA join hands to launch bullion spot exchange for catering B2B

National Stock Exchange of India Ltd (NSE) and India Bullion and Jewelers Association Ltd (IBJA) has joined hands to launch the Domestic Bullion Spot Exchange in line with SEBI guidelines. The duo is in advanced discussions with Industry participants in closing the shareholder structure.

The collaboration not only offers the much-awaited platform to the industry players for the spot market bullion transactions but also acts as a step in the direction of allowing investors and consumers to directly participate on the exchange platform.

Vikram Limaye, MD & CEO, NSE said, "We are happy to announce the Domestic Bullion Spot Exchange. 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."

Also, Limaye added, "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."

The bullion spot exchange is expected to ensure complete transparency in the bullion transactions executed on its platform. Its proposed framework will cater to B2B segments of the industry and will also play a pivotal role in integrating the value chain participants in the entire bullion ecosystem.

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

For shareholding structure, participation will be from NSE, IBJA, and industry participants (refiners, bullion dealers, jewelers, banks, overseas suppliers, funds, FPis, other MIIs, etc.) as per regulatory norms.

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.