Multi Commodity Exchange of India Limited (MCX), the country’s largest commodity exchange, today said it has inked a memorandum of understanding (MoU) with India Bullion & Jewellers Association (IBJA), the apex industry body in India for all bullion and jewellery associations, to set up bullion spot exchange.

This development is in line with the vision of Govt of India, of setting up trade-efficient and consumer-savvy system of regulated gold exchange in India for bullion stake-holders for efficient price discovery and transparency, as per statement by MCX M.D and CEO Mrugank Paranjape.

Gold Spot Exchange, once established, would help to a great extent in generating a vibrant gold ecosystem corresponding to India’s annual demand of around 800-900 tonnes.

It would also lead to assurance in the quality of gold, provide for a robust settlement mechanism, multiple delivery centers, active retail participation, greater integration with financial markets, and boost recycling, the MCX said in a statement on Thursday.

Shares of Multi Commodity Exchange Of India Ltd. was closed in the Stock exchange at Rs.858.30 as compared to the previous close of Rs. 855.65. The stock hit an intraday high & low of Rs873.50 and Rs851.05, respectively. The net turn-over during today’s trading was Rs.2.68 Crore.