NSEL and Shree Ganesh Jewellery launch the service
In a first of its kind initiative, National Spot Exchange Limited (NSEL) and Shree Ganesh Jewellery House Limited (SGJHL) have launched electronic trading of gold bars and coins. For the first time, a private organisation will participate in e-Selling of imported gold bars and coins. The service starts from August 2.
SGJHL is a government-appointed canalising agency with the requisite authorisation to import gold.
In the first phase, Shree Ganesh Jewellery House will sell imported London goods delivery bar with a minimum booking volume of 1 kg and 0.995 per cent purity. London goods delivery bar is a bar of gold or silver which meets the good delivery rules for gold or silver bars published by the London Bullion Market Association. Initially, although booking can be made from across India, the physical delivery of the gold will be across 19 districts of West Bengal.
West Bengal has been chosen as the first phase of the project as it is one of the largest precious jewellery manufacturing base in the country. SGJHL will soon look at expanding its base to other States in collaboration with NSEL and also offer 0.999 per cent pure gold.
The import and e-Spot trading of gold is expected to help SGJHL increase its growth momentum by adding 15 per cent to add around Rs. 200 crore to its top line in the next quarter. A release said that it would maintain a minimum holding of 150 kg of gold. Nilesh Parekh, Chairman, SGHCL, said, “Shree Ganesh expects about 1,000 kg of gold to be sold through this platform in this quarter.”
Anjani Sinha, Managing Director and CEO, NSEL, said, “We are glad that the physical bullion market has initiated the process of modernisation by adopting new technologies, which will transform the way bullion trade is conducted in our country.” National Spot Exchange is operative in 11 States. It provides delivery-based spot trading for 24 commodities.