Precious Metals Code proposed to regulate gold trading
For better organization and discipline in gold trading, various stakeholders, including representatives of the gold value chain and the World Gold Council, have decided to implement the Precious Metals Code for Commerce. gold. This code will include dos and don’ts for bullion traders and its violation will result in actions by the authority implementing the code, most likely the Indian Bullion Jewelers Association bullion trading organization. (IBJA).
In a closed-door meeting at the Sahara Star Hotel in Mumbai on Thursday, the issue was discussed between IBJA, WGS, India Gold Center working under the auspices of the Indian Institute of Management-Ahmedabad ( IIM-A), commodity and stock exchanges, and gold refiners. Association of Gold Refineries and Mint.
The meeting, which was reportedly convened at the request of the IBJA, decided to form three different committees. Besides the Precious Metals Code, another committee will deliberate on India’s gold delivery rules for gold and silver bullion.
From June, only BIS certified gold refineries will be allowed to import golden gold. For this, BIS has already specified its standards. And, the government is working separately on Indian gold standards. However, to date, no gold refinery in India, except MMTC-PAMPS, is recognized by the LBMA. Only LBMA standard gold is available on MCX. The IBJA has proposed that India’s Gold Good Delivery Standards and the committee finalize proposals for this. If this happens, even gold refined by a BIS certified gold refinery could be delivered to commodity exchanges.
According to a source who was aware of the discussions at Thursday’s meeting, the establishment of a spot gold exchange is an important issue that has been debated. A separate committee will look at the real issues regarding the gold exchange and come up with a roadmap and standards for self-regulation to help the government get approval for the spot exchange.