Days after receiving in-principle approval from Sebi to launch Electronic Gold Receipts (EGR) segment, BSE on Wednesday said it has collaborated with four regional associations from Maharashtra and Tamil Nadu to promote such products.
These pacts are aimed at providing impetus for the growth and development of commodities segment in general with an impetus for the proposed EGR market, the exchange said in a statement.
Thirunelveli Gold Silver Diamond Jewellery Traders Association, Nanded Sarafa Association, Saraf Suvarnkar Sangthna Pusad, and Ghadchiroli Zila Sarafa Association are the four associations with which BSE inked memoranda of understanding (MoU). Together these associations represent over 1,000 members involved in jewellery and bullion trade.
Sameer Patil, CBO, BSE said through these MoUs, the exchange and the associations, as well as the stakeholders they serve, will be able to capitalize on the synergies, knowledge and expertise to support innovations and development in spot trading for gold.
“The EGR segment will benefit as it will lead to greater assurance in the quality of gold supplied, efficient price discovery and transparency in transacting,” he added.
TAK.M. Kombiah Pandian, President of Thirunelveli Gold Silver Diamond Jewellery Traders Association, said the MoU will help over 140 members mitigate price risks of gold and procure the highest quality of the yellow metal.
Apart from knowledge sharing and research, the MoUs will help standardise EGRs for Indian markets at the regional level and enhance transparency in pricing.
The pacts will also explore potential business and facilitate growth by sharing knowledge and expertise to promote the launch of the India International Bullion Exchange at GIFT city IFSC (International Financial Services Centre). BSE said it is confident that with these partnerships it will be able to play a transformative role in developing a vibrant gold exchange in both the domestic and international zone, via EGR and India International Bullion Exchange.
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