BSE joins hand with Madurai District Gold and Silver Merchant Association to promote electronic gold receipt market

Stock exchange BSE on Wednesday said it has collaborated with the Madurai District Gold and Silver Merchant Association to provide impetus for the growth and development of commodities and the proposed electronic gold receipt (EGR) market in India.

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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, according to a statement.

The BSE is also confident that through this pact, bullion merchants, wholesalers, retailers and exporters from all over Madurai and wider south zone will promote and encourage the establishment of newer financial bullion and related markets.

Apart from knowledge sharing and research, the pact will help standardise EGRs for the southern markets and enhance transparency in pricing.

The memorandum of understanding (MoU) between both entities will also explore potential business and facilitating growth by sharing knowledge and expertise to promote the launch of the India International Bullion Exchange (IIBX) at GIFT City IFSC.

"The 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," Sameer Patil, chief business officer of BSE, said.

He further said the idea of the 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.

Ba Ramesh, president of Madurai District Gold and Silver Merchant Association, said the MoU will help over 290 members mitigate price risks of gold and procure gold of the highest quality.