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Reliance Spot starts trade in 100 gm, 1 kg gold bar contracts

Source : REUTERS
Last Updated: Thu, Sep 29, 2011 09:27 hrs
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Reliance Spot Exchange (RSX), part of Anil Dhirubhai Ambani Group's Reliance Capital, has started trading in contracts of gold bars of 100 grams and 1 kilogram from Thursday, eyeing a rise in demand after the 10 percent price fall this month.

The exchange, whose gold contract is compulsorily deliverable, plans to cater to 350,000-strong jewellers community pre-dominantly in smaller towns and cities.

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Reliance Spot, which trades about 400-500 metric tonnes of agri commodities through its platform, will expand to 4-5 cities from its current Mumbai centre in the short term, said its Chief Executive Kapil Bali.

The aim is to take care of the needs of small jewellers, who are usually at a loss as their requirement will be less and to meet this they are forced to buy from bigger counterparts without standardised packaging, said Rajnikant Patel, director, RSX.

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Festival and wedding season is under way in India, the world's biggest buyer of bullion, and demand is likely to peak by the end of next month, when Dhanteras and Diwali are celebrated.

"We will expand the portfolio of products and will expand the delivery centres and will expand the supplier base," said Patel.

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RSX also plans to launch more agricultural commodities such as soyoil and castor seed. At present, it has 9 commodities.




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