BDB mulls trading of lab-grown diamonds alongside real ones

SURAT: If all goes well, the lab-grown diamonds might be traded along with the real diamonds on the trading floors of Bharat Diamond Bourse (BDB) in Mumbai. For the first time, the board of BDB has proposed the removal of the restrictions on the trading of the lab-grown diamonds and invited its members to vote at the Annual General Meeting (AGM) to be held on December 28.
In a circular issued to its members and shareholders on Monday, BDB board said that there is restriction on the trading or dealing in lab-grown diamonds at the bourse.However, the board feels that considering the current operations of the company, the said restrictions should now be removed and be modified accordingly.
BDB had banned the trading of lab-grown diamonds on the floors following stiff opposition from the majority of the members dealing in the real diamonds in 2015. The trade members opined that there was rampant undisclosed mixing of lab-grown diamonds with natural diamonds, which had tarnished the image of the world’s largest diamond hub.
“From the last six to eight months we have been receiving representations from members to allow the trading of lab-grown diamonds at BDB. Majority of the board members and trade people are in favour of allowing the trading of lab grown diamonds. However, a decision will be taken at the AGM. We will be framing strict rules of trading at the BDB,” said Anoop Mehta, president of BDB.
Many trade members in the diamond trade have diversified into the lab-grown diamond business in the last couple of years. There are many world-renowned companies including De Beers, Sarin Technologies etc., who have introduced diamond detection machines to segregate the synthetic stones from natural ones.
According to Gems and Jewellery Export Promotion Council (GJEPC), the lab-grown diamond export from India witnessed 228% rise in April-November to Rs 3,128 crore against Rs 1,900 crore during the same period the previous year.
Shashikant Shah, chairman of Lab-grown diamond and Jewellery Promotion Council, told TOI, “It was our long-pending demand to allow the lab-grown diamond traders to trade on the BDB floors. We want to trade in lab-grown with full disclosure and stay away from the undisclosed mixing.”