BSE stock zooms 2% after signing MoU with Madurai District Gold and Silver Merchant Association to promote EGR, IIBX

From this tie-up, both entities, as well as the stakeholders they serve, will be able to capitalize on the synergies, knowledge and expertise to support innovations and development in spot trading for gold.

Nov 25, 2021 11:11 IST India Infoline News Service

Bombay Stock Exchange Building
BSE Limited has signed an MoU with the Madurai District Gold and Silver Merchant Association to provide the impetus for the growth and development of commodities and proposed Electronic Gold Receipt (EGR) market in India.

From this tie-up, both entities, as well as the stakeholders they serve, will be able to capitalize on the synergies, knowledge and expertise to support innovations and development in spot trading for gold.

Also, BSE is confident that via this MoU, bullion merchants, wholesalers, retailers and exporters from all over Madurai and the wider south zone will promote and encourage the establishment of newer financial bullion and related markets.

Sameer Patil - CBO, BSE said "BSE is confident of playing a transformative role in developing a vibrant gold exchange in both the domestic and International zone b ensuring maximum participation from across the country. The idea of spot trade via EGR and IIBX will lead to greater assurance in the quality of gold supplied, efficient price discovery and transparency in transacting gold for all stakeholders.

Ba Ramesh, President - Madurai District Gold and Silver Merchant Association said "I welcome the MoU with BSE which shall help our 290 plus members mitigate price risks of gold and procure gold of highest quality”

Apart from knowledge sharing and research, the MoU will help standardise EGRs for the southern markets and enhance transparency in pricing. The MoU between both entities will also explore potential business and facilitate growth by sharing knowledge and expertise to promote the launch of the India International Bullion Exchange (IIBX) at GIFT city IFSC.

At around 11.53 am, BSE was trading at Rs1,606.55 per piece up by Rs31.20 or 1.98% on Sensex.

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