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Proposed framework for Gold Exchange in India

  • IASbaba
  • May 18, 2021
  • 0
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Proposed framework for Gold Exchange in India

Part of: GS Prelims and GS – III – Economy

In news 

  • The Securities & Exchange Board of India (SEBI) has floated a consultation paper on the proposed framework for Gold Exchange in India.

Key takeaways

  • 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.

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