Bharat Diamond Bourse bans synthetic diamond trading

After Israel, Bharat Diamond Bourse (BDB) in Mumbai becomes the second largest bourse in the world to ban the trading of synthetic diamonds. A resolution was passed recently after majority of its members voted in favour of the decision.

The Bharat Diamond Bourse (BDB) in Mumbai has taken a historic decision to ban the trade in synthetic diamonds starting from October 1. Now, traders will be dealing purely in natural diamonds and action will be taken against those caught with synthetic diamonds.

A proposal to ban synthetic diamond trading was moved by the president of BDB, Anoop Mehta, during the Annual General Meeting (AGM), which preceded the electronic voting by the members recently. The result, majority of the members has voted in favour of the ban, which was formally announced later. Synthetic diamonds have started haunting the world’s largest diamond trading hub in Mumbai, which houses trading offices of majority of diamond companies and firms.

BDB president Anoop Mehta said, “The counting of votes was held in the BDB board room on Thursday afternoon and majority of the votes were in favour of banning synthetic diamond trading. A circular has been issued to all the members operating in the bourse. A strict vigil will be kept to ensure that no synthetic diamond enters the bourse from now.”

“It was damaging the image of Indian diamond industry worldwide. With this we have sent a message to the world bourses that we are dealing in natural diamonds,” added Mehta. Regional chairman, Gems and Jewellery Export Promotion Council (GJEPC), Dinesh Navadia told TOI, “Diamonds worth over $23 billion are traded in the bourse per annum. We want to build a clean image of the diamond industry and this is the beginning.”

Sources said that the operations of Special Economic Zone (SEZ) are likely to start by the end of October. Many diamond mining companies from across the world including De Beers, Rio Tinto, Alrosa, etc., are setting up offices. The decision to ban synthetic diamond trade will go a long way in ensuring clean trade at BDB.

Sabhyasachi Ray, executive director, BDB said, “It is good that the BDB has taken the initiative to ban the synthetic diamond trade. The trade is okay with the fact that the synthetic diamonds are sold with full disclosure. It is a criminal act when someone indulges in undisclosed mixing of synthetic diamonds with natural diamond parcels.”

BDB is the second bourse in the world to ban the synthetic diamonds trading. Last year, the Israel Diamond Exchange (IDE) was the first to officially ban synthetic diamonds, just as it was the first exchange to ban the trade in conflict diamonds. The Indian diamond industry’s image has eroded in the last one-and-a-half-year after a series of revelations were made on the detection of mixing of synthetic diamonds with natural diamond parcels. Even the international gemological laboratories raised an alarm on the unauthorized mixing of synthetic stones, found from the parcels sent from Mumbai and Surat.

Courtesy: Times of India