BSE, Bombay Bullion Assn. and Reliance Money join hands
MUMBAI: Bombay Stock Exchange (BSE), the Bombay Bullion Association and Reliance Money on Monday tied up to launch over-the-counter bullion trading platform in the country.
This is the first organised bullion trading platform that would be set up in the country and mark the introduction of bullion spot market in India. The platform will be launched within a month.
“India needs to graduate from a mere ‘price taker’ to a ‘price maker’ in the world gold market and organised spot gold trading,” said Sudip Bandyopadhyay, Director and CEO of Reliance Money while addressing a press conference here. “We plan to achieve this objective and act as a major service provider to the entire bullion market in the country through this trading platform,” he added.
BSE with its 26 per cent stake in the National Multi-Commodity Exchange (NMCE) is already in the commodity market and would be providing the domain expertise and global best practices for the initiative. BBA, the largest bullion trading association in the country, would help setting the gold prices in line with the best pricing mechanism followed by leading bullion markets across the globe.
"BSE along with NMCE brings not only the domain expertise but also the best international knowhow, benchmark practices and processes to create the most efficient market place,” said Rajnikant Patel, Managing Director and CEO of BSE.
“Apart from setting up this platform, we would look at launching the hallmarking centre and enable the process of setting the price of gold and silver on the lines of the AM/PM system in London,” said Suresh Hundia, President of BBA. The association controls over 75 per cent of bullion trade in India.
Reliance Money, with its retail presence with over 10,000 plus outlets across 5,000 towns and cities, would facilitate retail investors in purchasing gold, said Mr. Bandyopadhyay.