Summary
[India is advancing spot gold trading to try to gain greater pricing power]India is pushing forward reforms, trying to establish spot gold trading to better grasp the price of gold.
India is moving towards establishing a spot gold contract, finalizing trading rules, and firmly grasping the right to price gold.
India is the world‘s second largest consumer of gold. Giving gold at weddings and festivals and buying gold as a means of holding value are deeply rooted traditions in India. India has been working hard to reform its fragmented gem and jewellery industry to improve the transparency of supply, promote the implementation of purity standards, and increase consumer confidence.
The Securities and Exchange Board of India (Securities and Exchange Board of India) appointed by the government has proposed a new framework that prescribes the roles of spot exchanges, authentication agencies, vaults and traders. The policy will be open for public comment on June 18.
Kotak Mahindrabank(Kotak Mahindra Bank Ltd.) President and Global Transaction in MumbaibankShekhar Bhandari, the head of business, said that although there is no deadline for the introduction of the final regulations, the industry expects it to be finalized in September. The Indian gold industry also counts on spot trading to give it a greater say in pricing, just like China, the largest gold consumer. Bandari said:
“Spot gold trading is a good structural reform that the gold industry urgently needs. Once people can convert more of the gold remaining in the country into electronic securities, they will be able to conduct better transactions and improve economic performance.currencyCirculation. “
The new regulations aim to promote parallel transactions.
According to the new regulations,InsuranceA common interface will be established between treasury management institutions, depository institutions, stock exchanges and clearing companies. Spot gold that enters the vault through imports or domestic refineries will be converted into electronic gold receipts and then traded on the spot market.
The managing director of the World Gold Council’s Indian business, PR. Somasundaram, believes that spot gold transactions will reduce the cost of consumers buying gold, ensure the quality of gold, and prevent counterparties in contract settlement. risk.
As a member of the policy advisory group, Masandaram said:
“So far, the policy framework looks good. If it can be supported by a more practical implementation of goods and services tax, then we will have a very sound trading system. What is needed now is the final regulations in place, a simple software backbone. System to generate EGR and letbankDo business easily in this area. “
However, Metals Focus Ltd., a London-based consulting firm, said in a report that how imported goods will pass through the new exchange still needs more clarity. The consulting firm also recommends tax exemptions or credits to encourage the participation of gold traders, jewellers and manufacturers. Metal Focus Co., Ltd. stated:
“Parallel gold trading is still an important issue faced by organized participants in India. All imported goods must pass through a spot exchange, which may become a useful medium to promote organized trade. This will also help improve gold Traceability makes the entire trading system more transparent.”
(Source: Golden Ten Data)
(Editor in charge: DF318)
Solemnly declare: The purpose of this information is to spread more information, and it has nothing to do with this stand.
.