Kolkata: BSE, India’s second-largest commodity exchange, has signed a Memorandum of Understanding (MoU) with the Madurai District Gold and Silver Merchant Association to provide an impetus for the growth and development of commodities and proposed Electronic Gold Receipt (EGR) market in India. Through this association, both entities, as well as the stakeholders they serve, will be able to capitalise on the synergies, knowledge and expertise to support innovations and development in spot trading for gold.
BSE is also confident that through this MoU, bullion merchants, wholesalers, retailers and exporters from all over Madurai and the wider south zone will promote and encourage the establishment of newer financial bullion and related markets.
Apart from knowledge sharing and research, the MoU will help standardise EGRs for the southern markets and enhance transparency in pricing. The MoU between both entities will also explore potential business and facilitate growth by sharing knowledge and expertise to promote the launch of the India International Bullion Exchange (IIBX) at GIFT city IFSC.
Mr. Sameer Patil, chief business officer, BSE said “BSE is confident of playing a transformative role in developing a vibrant gold exchange in both the domestic and International zone by ensuring maximum participation from across the country. The idea of spot trade via EGR and IIBX will lead to greater assurance in the quality of gold supplied, efficient price discovery and transparency in transacting gold for all stakeholders.
Mr. Ba Ramesh, president – Madurai District Gold and Silver Merchant Association said “I welcome the MoU with BSE which shall help our 290 plus members mitigate price risks of gold and procure gold of highest quality”
BSE, India’s leading and most diverse exchange, is the market leader in the bullion ‘options in goods’ segment and only exchange to have deliveries executed in Gold, Gold Mini and Silver 30 kgs contract. BSE is also India’s first exchange to complete deliveries of Gold under BSE -BIS India Good Delivery Standard.