India’s International Bullion Exchange began its pilot run at a soft launch on Wednesday. The Exchange is scheduled to formally go live with an official launch on 1st October.

“The International Bullion Exchange shall be the gateway for bullion imports into India, wherein all the bullion imports for consumption shall be channelised through the Exchange,” the Ministry of Finance said.

India is one of the biggest gold-buying markets in the world because of the social importance of the yellow metal for many centuries. “The new Exchange is expected to bring all the market participants on a common, transparent platform for bullion trading,” the Ministry said.

India’s gold market is historically linked to the Dubai gold souk. Most of India’s big gold and gold jewelry importers have a presence in the Dubai gold souk and the emirate is a major source for gold re-exports to the Indian market.

“The new Exchange will be a place for efficient gold price discovery, assurance of quality, and a platform for greater integration with other segments of the financial market to help establish India’s position as a dominant gold trading hub in the world,” the Ministry’s statement said.

The International Financial Services Centre (IFSCA) in Gandhinagar, capital of Gujarat state, will be responsible for the International Bullion Exchange. Injeti Srinivas, Chairperson of the IFSCA, launched the pilot run of the Exchange today.

WAM