Gold trade gets new segment

Mumbai, Aug. 5: RSBL Spot, the electronic over-the-counter delivery-based bullion trading system of RiddhiSiddhi Bullions (RSBL), today launched a segment wherein contracts will be quoted in dollar terms and settled in rupee terms.

However, clients will also be able to see the equivalent price in rupees (in view mode only).

RSBL is the country’s largest bullion trading company with an annual turnover of over Rs 22,900 crore.

The company today said its new segment would facilitate the exporters and help trim the current account deficit (CAD). The government has been trying to deter gold imports by raising duties — the only commodity that the government can try and regulate without disrupting its economic growth cycle.

CAD is the difference between inflows and outflows of foreign currency. It rose to 4.8 per cent of GDP in 2012-13 against an RBI’s comfort level of 2.5 per cent.

In a press statement, the company said it would provide duty-free gold to those members using the new facility.

“Over the past few months, the government has been laying stress on reducing the CAD deficit by curbing gold imports. This facility will help boost gold exports. To begin with, we will launch this product in Mumbai. We will also set up bonded warehouses pan-India,” said RSBL managing director Prithviraj Kothari.

The terminal will be operational from 10.30 am to 9 pm through the weekdays to track various markets across the world.