MCX inks MoU with IBJA
Jointly
collaborate to explore opportunities
to set up the Bullion
Spot Exchange
Multi
Commodity Exchange of India Ltd (MCX), the country’s largest commodity exchange
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.
Mr.
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.
Comments
Post a Comment