INSUBCONTINENT EXCLUSIVE:
Kolkata: Multi Commodity Exchange of India Ltd (MCX) signed an MoU with India Bullion and Jewellers Association Ltd (IBJA), the apex
industry body for all bullion and jewellery associations in India on various cooperation activities for the growth and development of
bullion industry, including a joint viability of setting up a ‘Bullion Spot Exchange’ in India
It is in line with the Government of India’s vision of establishing trade efficient and consumer friendly system of regulated gold
exchange in the country for bullion stakeholders for efficient price discovery and transparency.
Gold Spot Exchange, once set up, would help
considerably in creating a vibrant gold ecosystem corresponding to India’s annual demand of around 800-900 tonnes
It would further lead to assurance in the quality of gold, provide for a robust settlement mechanism, multiple delivery centres, active
retail participation, greater integration with financial markets, and boost recycling
It would also give a fillip to the gold monetization efforts of the Govt
through transparency and standardization of the gold market.
Both MCX and IBJA have been continuously working towards furthering the
development of bullion and jewellery sector in India
By virtue of this MoU, the entities would also undertake a series of initiatives such as organising joint seminars and awareness programmes
on price risk management for bullion traders and jewellers across the country
These awareness programs would serve to wean away the small and medium sized jewellers from unorganized markets, while educating them about
the effective hedging tools such as Gold derivatives contracts—Futures Options that will enable jewellers to maintain efficient risk
management books of account
Moreover, the entities would facilitate measures to deepen commodity derivatives market and encourage participation of corporates/firms
including SMEs on the commodity exchanges to manage their commodity price risk.
Mrugank Paranjape, MD CEO, MCX said, “MCX and IBJA have
worked jointly with missionary zeal for creating awareness on risk management and regulatory compliances among bullion traders and jewellers
This encourages jewellers to choose organized ways of working.”
“In continuation to this, MCX and IBJA have entered an MoU to explore
collaboration in setting up a Bullion Spot Exchange in India, in line with the Govt.’s vision of a Regulated Spot platform”, he added.
