Mumbai : A bullion association and premier bourse BSE signed an agreement to set up the country’s first physical gold exchange, providing a platform for transparency in trading of the precious metal.

A separate SPV will be formed to establish the exchange, where India Bullion Jewellers Association (IBJA) and its constituents will hold 70% share and BSE the remaining 30%, IBJA President Mohit Kamboj said in a release.

BSE and IBJA have already approached Finance Ministry for necessary approvals.

India imports about 1,000 tonne of gold, equivalent to Rs 2,50,000 crore, every year. The proposed exchange plans to rope in designated bullion banks for the delivery of gold.

This will be first spot exchange platform where all banks, bullion merchants, jewellers, exporters, refiners, wholesalers, retailers, nominated agencies, gold mutual funds, besides consumers can transact.

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