Mumbai, Mar 12 (IANS): Stock exchange major NSE and India Bullion and Jewellers Association (IBJA) will soon launch the 'Domestic Bullion Spot Exchange' as per SEBI guidelines.

A NSE statement on Saturday said that India is the second largest consumer of gold, and it is first time that a domestic bullion spot exchange is being set up under the aegis of SEBI.

"This joint initiative by NSE and IBJA will not only offer the much-awaited platform to the industry players for the spot market bullion transactions but also act as a step in the direction of giving an opportunity to investors and consumers to directly participate on the exchange platform," the statement said.

"The 'Domestic Bullion Spot Exchange' shall ensure complete transparency in the bullion transactions executed on its platform."

As per the statement, the proposed business framework shall cater to 'B2B' segments of the industry and is expected to play a pivotal role in integrating the value chain participants in the entire bullion ecosystem.

"The shareholding shall have participation from NSE, IBJA and industry participants as per regulatory norms."

According to the statement, IBJA and NSE are already in advanced discussions with industry participants in closing the shareholder structure.

"This exchange shall bring in efficiency as well as transparency in the price discovery of bullion and at the same time offer confidence to the investors about the quality of metal being delivered through the exchange platform," said Vikram Limaye, MD & CEO, NSE.

"We are also happy to be working with IBJA in this initiative and we are sure that with their expertise and large member base, we will be able to aid the overall development of the bullion spot market as well as witness significant participation from the market players."