The GJEPC voted in favour of introducing a new membership category for lab-created diamond traders, while members of the BDB have voted to allow the trading of lab-created stones.
The debate about man-made diamonds has been a controversial one for many years and the BDB will now set regulations for trading of lab-created stones within the Bourse.
Some of the major regulations include a separate application and registration for members who wish to sell lab-created diamonds, while companies dealing in both natural and man-made product will be required to establish two separate entities.
Such companies will also need to identify and demarcate an office premises that will be utilised exclusively for the purpose of trade in lab-created diamonds.
However, members cannot begin trading in lab-created diamonds as yet.
The BDB has agreed to create a set of guidelines to be followed by members who wish to trade in lab-created diamonds.
Mehul Shah, vice president BDB, explained that, “members will have to adhere to a set of guidelines formed by the bourse’s management before they are allowed to trade in synthetic diamonds. The intention is to keep the two pipelines - natural and lab-grown - separate. The managing committee of BDB will now frame rules and guidelines on the same and decide the date from when members can start to deal in synthetics.”
The BDB had previously passed a resolution in 2015 banning the trading of lab-created diamonds at the bourse.
Anoop Mehta, president BDB, says that the bourse had received many requests from members, who wanted to diversify into the LGD category, “So, we requested the Natural Diamond Monitoring Committee (NDMC) to review the situation since it has already been almost five years since we banned the trading of LGDs from BDB; and even at that time we had stated that it was not a permanent resolution.
“The ban was implemented because at that particular point there was no awareness within the trade as well as the consumer or the retailer.”
Meanwhile, GJEPC members can now choose to identify themselves as lab-created diamond businesses, enabling others to know that they are active in this area.
A GPEC spokesperson told Rapaport, “As an export promotion council, we represent all verticals of the gem and jewelry industry. Lab-grown diamonds is a new vertical that has potential for growth, and an exclusive panel would further help and support this segment to grow.”
Colin Shah, chairman GJEPC said, “The decision to allow LGD trading within BDB will be a tough one, but I believe it is the right choice for the long-term sustainability of the Indian diamond manufacturing industry.
"In addition to our stringent detection and disclosure protocols, we must have retail SOPs [standard operating procedures] in place to ensure that customers are fully aware of the nature of the diamond they are purchasing. I envision the two diamond pipelines co-existing and thriving alongside each other.”
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The Great Diamond Debate is a collection of special edition publications covering the international diamond market. These publications have attained enormous readership and respect worldwide, with contributors from all aspects of the diamond trade weighing in on the debate.
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