Reliance Spot Exchange, part of Reliance Capital, on Thursday announced the launch E Gold Souk – physical trading platform in bullion - saying that it is aiming at trade of over Rs 5,000 crore in the first year.
This will be business-to-business (B2B) bullion exchange platform, and the company is looking at over Rs 5,000 crore trade in the first year, the company said.
"We are pleased to enter this important segment of physical trading in bullion. This is in continuation to our success in agricultural trading. We intend to be a full-fledged Spot Exchange by offering a wider basket of commodities and a complete range of services," Reliance Spot Exchange director Rajnikant Patel said.
The service is targeted at the B2B space between bullion dealers and jewellers and would benefit retail jewellers as it would be transparent, convenient and competitively priced.
Availability of gold will be in the form of LBMA approved gold bars of denominations 1 KG and 100 GM. The price quote will be in Rs per 10 gm and excluding VAT and other local taxes, but inclusive of Octroi.
Quality specifications will be 995 purity for 1 kg and 999 purity for 100 gm.
"Our extensive multi-city research showed that market participants feel the need for greater transparency. There is a demand for smaller quantities at better prices, hence we will also be offering 100 gram bars" Reliance Spot Exchange CEO Kapil Bali said.
The service on its launch will be available on member terminals and going forward on mobiles as well.
Buyers and sellers will be able to place orders with a margin of 5 per cent but will have to pay in balance funds/commodity by the settlement time. Besides, buyers can pay vaulting charges and hold the gold in exchange accredited vaults.
As long as the gold is lying in the exchange accredited vaults the holders of such gold shall be able to sell the same on the exchange platform, the statement added.