Finally, electronic trading of gold bars and coins has come to India with National Spot Exchange Limited (NSEL) and Shree Ganesh Jewellery House Limited (SGJHL) launching the scheme in India on Monday.
According to a press note, for the first time, a private organisation will participate in e-selling of imported gold bars and coins. The service started from August 2.
SGJHL is a government-appointed channelising agency with the requisite authorisation to import gold.
In the first phase, Shree Ganesh Jewellery House will sell imported London goods delivery bar with a minimum booking volume of 1 kg and 0.995 per cent purity.
London goods delivery bar is a bar of gold or silver which meets the good delivery rules for gold or silver bars published by the London Bullion Market Association.
Initially, although booking can be made from across India, the physical delivery of the gold will be across 19 districts of West Bengal.
West Bengal has been chosen as the first phase of the project as it is one of the largest precious jewellery manufacturing base in the country. SGJHL will soon look at expanding its base to other states in collaboration with NSEL and also offer 0.999 per cent pure gold.
The import and e-spot trading of gold is expected to help SGJHL increase its growth momentum by adding 15 per cent to add around Rs 200 crore to its top line in the next quarter. A press release said it would maintain a minimum holding of 150 kg of gold.
National Spot Exchange is operative in 11 states. It provides delivery-based spot trading for 24 commodities.