Reliance Spot Exchange launches E Gold Souk
29 Sep 2011
Reliance Spot Exchange, part of Reliance Capital, today announced the launch of E Gold Souk, a physical trading platform in bullion. According to the company, it was aiming at trade of over Rs5,000 crore in the first year.
It would be a business-to-business (B2B) bullion exchange platform, the company said, adding that it was looking at over Rs5,000 crore trade in the first year.
Reliance Spot Exchange director Rajnikant Patel said the company was pleased to enter the important segment of physical trading in bullion. This was in continuation of its success in agricultural trading, he said.
The company intends to be a full-fledged spot exchange offering a wider basket of commodities and a complete range of services.
Targeted at the B2B space between bullion dealers and jewelers, the service would benefit retail jewellers as it would be transparent, convenient and competitively priced. Quality specifications would be 995 purity for 1 kg and 999 purity for 100 gm.
According to Reliance Spot Exchange CEO Kapil Bali, the company's extensive multi-city research showed that market participants felt the need for greater transparency. He added there was a demand for smaller quantities at better prices, hence the company would also be offering 100 gram bars. With its launch, the service would be available on member terminals and later on mobiles as well.
Buyers and sellers would be able to order with a margin of 5 per cent but would need to pay in balance funds/commodity by the settlement time. Besides, buyers could pay vaulting charges and hold the gold in exchange accredited vaults.
As long as the gold was lying in the exchange-accredited vaults, the holders of such gold would be able to sell the same on the exchange platform, the company said in its statement.