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Gold July 29, 2021 01:00:34 PM

SEBI Suggests Routing All Gold Imports Through Spot Gold Exchange

Paul Ploumis
ScrapMonster Author
Several other countries, including major gold markets such as Turkey and China, have such a system already in place.

SEBI Suggests Routing All Gold Imports Through Spot Gold Exchange

SEATTLE (Scrap Monster): The Securities and Exchange Board of India (SEBI) - the regulatory body for securities and commodity market in India under the Ministry of Finance suggested that all gold imports into the country must be routed through the proposed spot gold exchange. This will ensure gold monetisation at source, said G Mahalingam, whole-time member, SEBI.

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According to him, it is considered highly practical that the country should move into a system where all gold imports are routed through the Electronic Gold Receipt. All gold beyond a threshold purity level should be funnelled through the exchange ecosystem, which in turn will ensure conversion into a financial product, Mahalingam said while addressing a conference organized by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Several other countries, including major gold markets such as Turkey and China, have such a system already in place. The experience of these countries could very well serve as an example for India during the establishment stage.

The setting up of the spot gold exchange is expected to transform India from being a price taker in the international market to a price maker.

As per estimates, India imports around 800-900 tonnes of gold worth nearly $35 billion every year.

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