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Indian bullion dealers to report uniform price twice daily
By Swansy Afonso
Dow Jones Newswires
via The Wall Street Journal
Monday, June 1, 2009
MUMBAI -- Indian gold dealers and retailers have formed the Indian Bullion Market Association (IBMA), which will provide a uniform price twice daily for gold sold in the local market.
The new association was launched by the National Spot Exchange Ltd., an arm of India's leading commodity futures bourse, the Multi Commodity Exchange.
The Indian gold retail market is fragmented, and until now there has been no uniform local price available for spot gold.
The association will also approve local refineries' gold output and certify whether the metal produced can be traded on the National Spot Exchange, Anjani Sinha, managing director and chief executive of the spot exchange said at the launch of IBMA over the weekend.
Most of India's annual gold consumption of 700 to 800 tons is imported, so the local gold price is pegged to international prices and to the value of the rupee against the dollar.
"IBMA will identify the inefficiencies involved in the Indian bullion market and work to create a momentum to remove such inefficiencies," Mr. Sinha said.
IBMA has more than 20 regional bullion trade associations as members, each having over 200 members themselves.
National Spot Exchange Ltd., promoted by the Financial Technologies India Ltd., will hold 51% of IBMA, while bullion traders will hold the remaining stake.
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