Thus, it will further widen the importer base in the country.
SEATTLE (Scrap Monster): The India International Bullion Exchange (IIBX)- the country’s first global gold exchange will lead to creation of a regional hub, which in turn will foster imports of gold by jewellers. The exchange, whose trade will be in the form of bullion depository receipts, will be formally launched today.
According to Ashok Gautam, Chief Executive Officer, IIBX, the spot exchange is expected to attract large number of dealers, refineries and foreign banks. It will pave way for direct imports of the precious metal by qualified jewellers, as against the current rules that allow only certain central bank-approved banks and nominated agencies to do so. Thus, it will further widen the importer base in the country.
The broader aim of setting up the exchange is to make India a key regional hub for bullion flows, not only for domestic buyers, but also for non-resident Indians across the globe, who wish to add gold to their portfolio. The trades will be exempt from local duties, if their scope is limited to within the city.
Incidentally, India is the second largest consumer of gold in the world after China. As per estimates provided by the World Gold Council (WGC), the country’s gold demand is expected to total around 800 tonnes this year.
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