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Rediff News  All News  » Business » ADAG launches bullion spot market

ADAG launches bullion spot market

April 21, 2008 15:57 IST
Anil Ambani group firm Reliance Money on Monday joined hands with the Bombay Stock Exchange and the Bombay Bullion Association to launch the country's first organised bullion trading platform.

The over-the-counter 'Bullion Spot Market' would be the first of its kind and would be operationalised within a month, the Anil Dhirubhai Ambani Group announced. 

This would help India -- already the world's largest gold consumer -- to move from being a 'price taker' to a 'price maker' in the global gold market, Reliance Money CEO Sudip Bandyopadhyay said.

Currently, gold prices are governed by London Bullion market as a reference point.

While noting that BSM trading platform would be in line with
London Bullion Market, Bandyopadhyay said that it would help jewellers monitor international price movements on real time basis and facilitate retail investors in purchase of gold coins and bars.

BSE, with its 25 per cent stake in NMCE, is already present in the commodity market and would provide domain expertise for the initiative. BBA, the country's largest bullion trading association that controls 75 per cent of domestic bullion trade, would help in setting the prices.

Reliance Money, the brokerage and financial products distribution arm of ADAG, would facilitate retail investors in purchasing gold, while capital market technology firm IT People would provide the systems for the initiative.
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