Mumbai, Sep 12 (PTI) International Financial Services Centre Authority (IFSCA) and India Gold Policy Centre (IGPC) - IIMA signed agreement on Saturday to provide expertise to facilitate the establishment of International Bullion Exchange (IBE) in India.
Under the memorandum of understanding (MoU), IGPC-IIMA will take a top-down approach by setting the broader vision, developing success strategies and creating the operating guidelines for the seamless functioning of the bullion exchange, according to a statement.
'We are glad to have such sectoral expertise within institutions like IIMA when we are looking at a project with a vision that has global reach. We are excited about this initiative and looking forward to a fruitful engagement,” IFSCA Chairperson Injeti Srinivas said.
The IFSCA has been set up by the government to regulate all financial services in International Financial Services Centres (IFSCs) in the country.
The IBE is intended to strike an equilibrium in order to reduce the market inefficiencies that currently exist in the Indian bullion trade, thus this move would go on to integrate precious metals trade with financial markets, and create a transparent platform for bullion trading, Srinivas added.
'India's share of global gold consumption is about 20 to 25 per cent. However, even after two decades of the gold market opening up, we still do not have an infrastructure that connects India to the rest of the world. Price discovery and transparency is fundamental to a well-functioning market that can operate at scale.
'Creating a market that is connected to the rest of the world is an answer to most of the challenges that gold is said to bring to the economy. IBE is expected to facilitate market development through higher degree of compliance, traceability, and product innovation,” IGPC-IIMA Chairperson Arvind Sahay said. PTI SM CPS