NCDEX's bullion spot exchange starts operations in A'bad, Mumbai

NCDEX Spot Exchange Ltd (NSPOT) and Riddhi Siddhi Bullion Ltd (RSBL) have recently started operations of their bullion spot exchange in Mumbai and Ahmedabad. Both the players plan to cover other metro cities over the period of next three months.

"The bullion spot exchange kicked off operations from the beginning of last week. Intially, the platform has been rolled out in Ahmedabad and Mumbai as RSBL has its delivery centers in these two cities. Mumbai and Ahmedabad constitute 50 to 60 per cent of the total gold imports in the country. As a result, the platform has been launched from these cities", said Prithviraj Kothari, director, RSBL.

Leading spot exchange in the country NSPOT has joined hands with RSBL, a major bullion physical market player, to jointly establish a nationwide bullion spot exchange in the country. The spot exchange gave delivery of 15 kgs and 13 kgs of gold on intial two days. "On Thursday, the gold delivery was 63 kgs", Kothari added.

At present, the precious metal exchange offers gold (1 kg bar) and silver (30 kg) contracts. After Mumbai and Ahmedabad, this bullion exchange will cover cities such as Hyderabad, Delhi, Kolkata and Chennai over the period of next three months.

NSPOT and RSBL have jointly created a new entity called NCDEX Spot Bullion Ltd to develop online real-time spot exchange in bullion segment. As part of the joint venture, deliveries of gold and silver are carried out through NSBL's delivery centers.

The bullion trading company currently has a total eight delivery centers across the country and it open six more centers in cities such as Kochi, Delhi, Kolkata,Vadodara and Bhavnagar.