The IBMA will promote the growth and development of bullion trade and industry by identifying and removing inefficiencies in Indian bullion market. IBMA will also approve local refineries and introduce spot delivery contracts on NSEL.

India imports around 25% of the world’s gold production but does not exert a significant impact on gold price discovery. “IBMA will address global bullion issues and reduce disparity between domestic prices and international prices and aims to create linkages between domestic stock of gold and silver,” says Suresh Hundia, president of Bombay Bullion Association.