Bullion trading counter launched | business | Hindustan Times
Today in New Delhi, India
May 23, 2017-Tuesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Bullion trading counter launched

This company would provide an over the counter platform for traders and retailers to buy and sell gold and silver on the lines of London Bullion Market. MC Vaijayanthi reports.

business Updated: Apr 21, 2008 23:09 IST
MC Vaijayanthi

In an effort to create an organized spot market for bullion (gold & silver) trading, the Bombay Bullion Association, the Bombay Stock Exchange and Reliance Money have come together to float a company, Bullion Spot Market Limited.

This company would provide an over the counter platform for traders and retailers to buy and sell gold and silver on the lines of London Bullion Market.

"We are in consultation with all the regulators for appropriate approvals," said Sudip Bandyopadhyay, CEO, Reliance Money.

The trading platform is likely to launched in a month. Retail investors can register themselves online with Bullion Spot Market and trade without any margin requirements whereas the traders are required to pay a margin of 20 per cent and also pay security deposit for registration. While trading can be done online from any location within India, delivery would be available from vaults available in 14 locations. For trading that takes place between 10 am to 2 am delivery would be on the same day and for trading between 2 to 8 pm delivery would be effected the following day, said Bandyopadhyay.

BSE, which holds a 26 per cent stake in commodities exchange, NMCE would provide the domain expertise, the BBA would help setting the gold prices and Reliance money with its large retail presence would facilitate retail investors in purchasing gold, explained officials. However, they declined to give any details on the nature of the joint venture, their respective equity stake and they money that is being invested in the venture.

The aim of creating a bullion trading market in the long term should help India play a role in determining the price of gold, said Anil Mishra, CEO of NMCE. "If we are the biggest consumers of gold, we should be able to contribute to the price and not allow some hedge funds to control the price," Mishra said. India's annual gold demand is estimated to be 800 tonnes and the domestic prices follow the price set on the London exchange. "Domestic traders would definitely move to the online trading platform," said S.P. Sonawala of National Refinery.