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Mumbai: Reliance Capital, the financial services provider controlled by billionaire Anil Ambani, plans to set up a screen-based platform to trade gold for immediate delivery in India, the world's biggest user of the precious metal.
Reliance Money, the retail broking unit of Reliance Capital, will partner the Bombay Stock Exchange and the Bombay Bullion Exchange, chief executive Sudip Bandyopadhyay told reporters in Mumbai on Monday.
The Bullion Spot Market, as the platform will be known, will start trading in about a month, he said.
The exchange will allow jewellers and investors nationwide to buy and sell the metal, as the fall in the dollar and rising inflation increase its appeal as an alternative asset. Gold trading in London averaged 25.7 million ounces a day in March, a 21-month high, according to the London Bullion Market Association.
Price setting
"India needs to be a price setter in the global spot gold market and our initiative will be a first step in that direction," Bandyopadhyay said. "The platform will also ensure uniformity in pricing of the metal in India and greater transparency in transactions."
The spot market will complement futures trading in bullion on India's biggest exchanges, the Multi Commodity Exchange of India and the National Commodity and Derivatives Exchange. Gold prices in India largely follow the trends on the Comex division of the New York Mercantile Exchange.
Jewellers and retail investors can buy or sell gold in units of 100 grams or 1 kilogram and the metal will be delivered through 14 vaults across the country, Bandyopadhyay said.
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