Proposed framework for Gold Exchange in India
Part of: GS Prelims and GS – III – Economy
- The Securities & Exchange Board of India (SEBI) has floated a consultation paper on the proposed framework for Gold Exchange in India.
- The Gold exchange proposal was announced by the Finance Minister.
- SEBI is entrusted with the task of regulating the proposed exchange which includes vaulting, assaying the gold quality and delivery standards
- The existing stock exchanges may deal in ‘electronic gold receipt’ (EGR) through a separate segment.
- SEBI has also suggested a new exchange exclusively for EGR that would have advantages such as better liquidity and single-price reference.
- It has also been suggested that an entire transaction be divided into three tranches.
- The vault manager should have a net worth of ₹50 crore and will be required to furnish security deposits.