Much-awaited Bullion Spot Market (BSM), the country’s first organized bullion spot trading platform, is expected to be launched in the mid-August 2008.
Reliance Money, the Financial Broking and Distribution Company of Reliance ADA group joined hands with Bombay Stock Exchange (BSE) and Bombay Bullion Association (BBA) to set up OTC bullion trading platform in the country. Spot trading would be in line with London bullion market. ?The spot trading in OTC bullion is expected to begin around August 15, 2008. We will finish our beta testing in a month time,? Sudip Bandyopadhyay, director and CEO, Reliance Money told FE. The R-Money with 10,000 plus outlets across 5,000 towns and cities has a large presence in the precious metal retailing through its pan India network. The company would facilities retail investors in purchasing gold. The OTC bullion platform is aimed at servicing needs of bullion investors & traders, jewellers and retail investors. The jeweller can trade in 1 kg and 30 kg bar. This platform will offer trading in gold and silver.
?Physical deliveries will be made through 22 major bullion vaults in the country,? he said. Apart from R-money, Bombay Stock Exchange (BSE) will provide the domain expertise and global best expertise for this initiative.
BBA, the largest bullion trading association in the country, would help setting the gold prices, in line with best pricing mechanism followed by leading bullion markets across the globe. Currently, gold prices are governed by London bullion market.
London is the largest centre for OTC transactions followed by New York, Zurich and Tokyo. Global wholesale OTC trades cleared through London. The size of domestic physical bullion market is estimated over Rs 3 lakh crore and the country consumes over 800 tonne gold annually.