A bullion association and premier bourse BSE today signed an agreement to set up the country's first physical gold exchange, providing a platform for transparency in trading of the precious metal in the world's top consumer.
A separate SPV will be formed to establish the exchange, where India Bullion Jewellers Association (IBJA) and its constituents will hold 70 per cent share and BSE the remaining 30 per cent, IBJA President Mohit Kamboj said in a release here.
BSE and IBJA have already approached Finance Ministry for necessary approvals.
There will be complete transparency if all trades of bankers, bullion merchants and jewellers, and buying and selling of gold are routed through this exchange, he said.
The bullion exchange can generate data for the Government, which will be helpful in detecting bogus and malicious transactions, Kamboj said.
India imports about 1,000 tonne of gold, equivalent to Rs 2,50,000 crore, every year.
The proposed exchange plans to rope in designated bullion banks for the delivery of gold.
This will be first spot exchange platform where all banks, bullion merchants, jewellers, exporters, refiners, wholesalers, retailers, nominated agencies, gold mutual funds, besides consumers can transact.
Once the GST is in place, this spot exchange will enable buying and delivery of goods all over country at one price, Kamboj added.
IBJA is also planning to set up offices in all States and enlist 1,00,000 members across the country for better representation to the Government.
