Today on Commodity Market we will try to know about Gold Exchange and see what is Gold Exchange and how will it work. Also, you will know how investors will benefit through gold exchange.
Coming Gold Exchange
The blueprint of the country’s first gold exchange has been introduced. SEBI has prepared a blueprint for gold exchange. People will get pure gold through gold exchange. Under this, India’s role in deciding the price of gold in the world will be strengthened.
buy pure gold
Buying and selling of pure gold can be done through the Gold Exchange. EGR i.e. Electronic Gold Receipt will be available on depositing physical gold in this. The quantity and purity of gold will be given in this receipt and the same will be traded on the receipt exchange. Investors will get the delivery of receipt by depositing the receipt. Delivery will be in the form of physical gold on the Gold Exchange.
How will it work?
How will the gold exchange work? If you look at this, then let us tell you that the gold exchange will also work like a stock. With the help of broker, investor can buy and sell gold. The buyer has to tell how much gold he wants. The buyer of gold will have to give information about the amount of pure gold he needs and the seller will have to mention the quantity of gold. The seller through the gold exchange will have to tell how pure the gold is. EGR will be given to the buyer and seller of gold through the gold exchange. There is also a provision of punishment for default.
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Will become Vault Managers
SEBI has issued rules for becoming Vault Managers on the Gold Exchange. SEBI has issued the rules on 31 December 2021. Let us tell you that SEBI had approved the setting up of a gold exchange last year. Commodity market experts say that this is expected to bring more transparency in the spot price of gold. EGR will be notified like securities and trading, clearing, settlement of EGR will take place like shares. After that the gold will be reflected in the demat account of the investor. This is expected to create a new gold ecosystem in the country.
What did SEBI say?
On the gold exchange, SEBI has said that the vault managers will be registered as intermediaries, regulated. Vault Managers will provide vaulting service for gold deposits. EGR can be generated from this surveillance of Vault Managers. Registration certificate is required to become a Vault Manager. You have to apply to get the registration certificate. Only a registered entity in the country can apply for Vault Manager.
Vault Manager Responsibilities
It will be the responsibilities of the Vault Manager to accept deposits, store gold, keep gold safe, generate EGR, withdraw EGR, settle complaints, maintain depository records and reconcile the records with physical gold.
Gold will be imported from IIBX
The gold import will be through India International Bullion Exchange. The government has approved gold import through IIBX. Agencies notified by RBI will be able to import gold. Along with this, agencies notified by DGFT will also be able to import gold. Jewelers notified with IFSCA will also be able to import gold by doing so.