DIAMOND AND PRECIOUS STONES MARKET
The Diamond and Precious Stone Market was opened on April 4, 2011. The target of the Market is to establish a secure and organized market condition in Turkey for diamond and precious stones trading. Turkey launched its first diamond market and is aiming to become a regional hub for diamond.
The first trade in the market has been occurred after an amendment in VAT law on September 30th, 2014. The amendment of VAT Law states that in case the precious stones (raw or processed diamond, ruby, emerald, topaz, sapphire, chryso-lite, pearl) are imported to be traded within Borsa İstanbul’s Diamond and Precious Stones Market, delivered to the exchange market and traded between the members of exchange market within the market or out of the market, provided that such trades are notified to the market according to the relevant legislation, they shall be exempted from VAT. Other deliveries of precious stones are not covered by this exemption.
According to the article 9 of the Regulation; with Cabinet decision which is about Decree on the Regulation and Control of Foreign Trade of Rough Diamond dated on 10/10/2006 and numbered 2006/11115, both rough diamond in market which are included Kimberley Process Certification System and all polished diamonds whether natural or synthetic which are any type of shape are traded in market.
Members of Diamond and Precious Stone Market
Precious Metals Market Members
Transactions of diamond and precious stones are carried out in session floor which is organized for market transactions with participation of both the Exchange officials and representatives of members. However, in case the institution which prepares valuation reports on diamond or precious stones is not located where the Market is, transactions can be conducted out of the floor in accordance with the principles set out in Procedures and Principles Regarding Diamond and Precious Stones of Borsa İstanbul. In this case, trade forms together with other documents specified in the legislation are required to be submitted to the Exchange next business day.
While seller and buyer members can be different also seller and buyer can be the same member. Buyer and seller are brought together in the session floor for analyzing, weighing and interweaving of the commodities to be traded. Transactions are only done physically. After deal is struck between buyer and seller, transaction forms are filled and given to the Exchange officials by representatives of the trade parties. All evaluations on diamond or precious stone are done by buyer and seller and the amounts of carats are saved by the Exchange.
The Exchange does not take any responsibility and will not be a side of any transaction done on the Market. The registrations of the transactions occurred in Exchange are saved by the Exchange officials by the consent of buyer and seller side in the same business day.
Of the imported precious stones to be traded on the Exchange, alongside valuation report, customs declaration, invoice and assayer report submitted to the related customs are required to be submitted to the Exchange.
Session is performed from 09:30 to 17:30 on business days. Buyers, sellers, market members, representatives of members, Exchange officials that are authorized on the market and the Exchange staff that are authorized by the Exchange Management can only enter to the session floor.
Beside rough diamonds included in the Kimberley Process Certification System and polished diamonds; rough or polished or physically or chemically treated natural stones; rough or polished synthetic stones can be traded on the Market.
If requested by a market member and contract on safe deposit box is signed, in appropriate size and number of safety boxes can be rented yearly or daily. For the use in custody of diamond and precious stones a strong room (vault) was established and security of this room is provided by the Exchange. Market members getting custody service are given a key of a box and at the end of the term they must give back the key. Insurance of commodities is in responsibility of market members and they are responsible for commodities which are in their safety boxes. The Exchange is responsible for only security of diamond and precious stones vault and cannot be held responsible for any damages/losses coming from commodities in the boxes.
Custody fees are:
a) For small size safety boxes 200 TRY/Year or 2 TRY/Day,
b) For medium size safety boxes 250 TRY/Year or 3 TRY/Day,
c) For big size safety boxes 300 TRY/Year or 4 TRY/Day.
In the first trade of imported or kept-in-stock diamond or precious stones on the Market, an exchange fee at the rate of 1.25 per thousand over total transaction volume is charged for both members. If a precious stone previously traded on the Exchange will be re-traded, rate of exchange fee will be 0.75 per thousand for each trade party. This rate is also applied to precious articles that will be traded on the Market. In cases valuation reports are taken into consideration and if total value of a trade realizes 30% lower or higher than the amount stated on the valuation report, exchange fee will be calculated over the amount of valuation report.
Duty of the Arbitration Committee is to resolve disputes on the market impartially. Full members and substitute members of the Diamond and Precious Stone Market Arbitration Committee are designated in the first meeting of the Exchange Board of Directors following to achievement of adequate number of members.
According to the article 30 of the Regulation, referees fee is determined in the Arbitration Committee selection meeting of the Board of Directors.