This exchange will be considered as a major entry gate for gold imports in India. It is believed that now whatever gold will be imported into the country, it will come under this exchange. Gold consumption is the highest in India. Therefore, this exchange is being termed as an important step.
The pilot run of the International Bullion Exchange has been launched by the International Financial Services Centers Authority (IFSCA) on Wednesday. On October 1, 2021, when the IFSCA is established, the day will come under the Bullion Exchange 2020 of the Exchange Authority. A notification was issued in this regard on 11 December 2020. When the General Budget was presented in February 2020, this exchange was announced at that time.
Will play a big role in gold imports
This exchange will be considered as a major entry gate for gold imports in India. It is believed that now whatever gold will be imported into the country, it will come under this exchange. Gold consumption is the highest in India. Therefore, this exchange is being termed as an important step and the prices fixed here will decide the price of gold, which will be in line with international standards.
It is being said that after this exchange, the correct prices of gold will be fixed. Right now gold is imported in different ways. India is the largest importer of gold. This is expected to shift a major part of gold trading from Dubai to India. Such exchanges are also in London, Shanghai and Turkey. This exchange will also keep an eye on what is going on in the world of gold.
Gold will be trading like a stock
After the arrival of the gold exchange, trading of gold will start like a stock. Earlier some work was going to be outsourced in this, but now it has been decided that everything will be done under the supervision of SEBI. There will be an electronic gold receipt, through which trading will be done on the gold exchange. It is believed that with the existence of gold exchange, transparency regarding price and quality will increase.
According to a report, the trading company will first deposit gold with Vault on the exchange. Thereafter, the Vault Manager will issue an Electronic Gold Receipt (EGR) in lieu of gold. EGR will be able to be listed on the exchange i.e. EGR will be very important and through this you will be able to trend. After listing, EGR will be traded like a share. The work of clearing and settlement of EGR will be done like shares. Lot will be available from 5 grams to 1 kg, in which trading can be done.
22,000 tonnes of gold in India
After this exchange, a gold spot exchange is also going to come, whose regulator will be SEBI. It will be traded through the Gold Spot Exchange. The eyes of the rest of the world will also be on this exchange. According to an estimate, about 22,000 tonnes of gold is lying in Indian homes at this time, which is inactive. According to experts, India consumes 800-900 tonnes of gold annually. The International Bullion Exchange is expected to have uniform pricing of gold across the country. Today gold prices vary from state to state. It is being told that Gujarat International Finance Tech (GIFT) City near Ahmedabad has been selected for this exchange.
Why was it started
Due to the high consumption of gold in India, the government had decided to start this exchange. IFSCA will also act as the regulator of the bullion exchange. In the year 2019, about 700 tonnes of gold was consumed in India. All the big banks of the country, Gold Exchange Trade Fund (ETF), government agency like MMTC will be given membership of Bullion Exchange. Big jewelers can be given sub-dealership. According to gems and jewelery exporters and bullion experts, gold prices were constantly changing due to the corona epidemic. While there was no demand for gold during this period. The buying and selling of gold by the US and other international speculators determines the price which has nothing to do with India.
Also read- Where is the government spending the income from tax on petrol and diesel, know everything related to it