Last Updated :
31 May 2009 at 06:35 IST
Bullion dealers launch group for gold price discovery
Commodity Online
MUMBAI: Indian Bullion Market Association (IBMA), a national-level professional company has been launched by the leading bullion and jewellery merchants associations in alliance with National Spot Exchange Ltd. (NSEL).
Indian Bullion Market Association (IBMA) is the national level body being set-up to represent the Indian bullion trade and industry. It is a consortium of whole India’s bullion trade and industry, which have joined hands with National Spot Exchange Limited, the pan India Electronic Spot Market for commodities.
The idea is to promote a professional organization dedicated towards the growth and development of bullion trade and industry. IBMA is committed to identify the inefficiencies involved in Indian bullion market and to create a momentum to remove such inefficiencies in a gradual but steady manner. IBMA will also approve local refineries and introduce spot delivery contracts on NSEL, where such bars will be acceptable for delivery.
On the occasion, Mr Anjani Sinha, MD & CEO, NSEL, said, “We depend on the international market for the benchmark price which is based on London AM/PM price fixing. India imports around 25 per cent of the world’s gold production, still it does not exert any significant impact in discovery of gold prices. I am very happy that well-known Indian bullion dealers and jewelers have come together with a vision to create a national level association and create a benchmark Indian spot price for bullion.”
Mr. Suresh Hundia, President, Bombay Bullion Association, said, “By bringing together bullion dealers and jewelers, IBMA will address global bullion issues and reduce disparity between domestic prices and international prices. It also aims to create linkages between domestic stock of gold and silver.”
With the National Spot Exchange Ltd. (NSEL) as its promoting partner, IBMA’s goal is to achieve India’s status as a price-setter rather than price-taker in bullion trade. The Board of Directors of IBMA will consist of representatives of NSEL, representatives from bullion dealers, and professional and independent directors having experience in bullion trade. IBMA will also have a technical committee for advising its Board on business development, approval of local refineries, code of conduct and other aspects of bullion trading.
Though India is the leading player in import and trade in bullion and export of jewellery, it does not exert any significant impact in discovery of gold prices in the international market. The reason is that country’s bullion trade is fragmented and unorganized.
Regional bullion and jewellary merchants associations from across India have extended their whole hearted support to IBMA in its noble initiative. Such associations include Bombay Bullion Association, Mumbai, The Madras Jewellers & Diamond Merchants Association, Chennai, West Bengal Bullion Merchants & Jewellers Association, Kolkata, Swarna Shilpa Bachao Committee, Kolkata, Shree Choksi Mahajan, Ahmedabad, Shree Manik Chowk Gold Silver Ornament Association, Ahmedabad, Jewellers Association, Ahmedabad, Gems & Jewellery Trade Council of India, Ahmedabad, Delhi Bullion Jewellers Welfare Association, Delhi, The Bullion Merchants Association, Delhi, Twin Cities Jewellers Association, Hyderabad, AP Gold Silver Jewellery & Diamond Merchants Association, Hyderabad, Jaipur Jewellery Association, Jaipur, Jaipur Sarafa Trader Association, Jaipur and so on.
IBMA has plans to set up offices in major bullion trading hubs and provide customized services to the bullion dealers in trading, delivery and settlements.
Indian Bullion Market Association (IBMA) is an organized and structured association of bullion industry comprising of leading bullion dealers and jewelers from India. IBMA is incorporated under Companies Act, 1956 as a public company limited by shares. It is promoted by National Spot Exchange Ltd. (NSEL) and the leading bullion dealers. The main purpose of IBMA is to create a pan-India platform for the bullion dealers, trading members, banks FIs, FIIs and other strategic investors to trade in bullion in more organized and transparent manner on NSEL platform and to enable India as a price-maker rather than price-taker in the bullion trade.
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