Bullion trade panels on self-regulation, spot exchange

The country’s bullion industry is moving in the direction of self-regulation, it appears.

Three committees have been formed — one for a gold trade code, another for good delivery rules and a third for a spot exchange.

A meeting was held in this city on Thursday. There were representatives from business chambers, the World Gold Council, banks, the Indian Bullion and Jewellers Association (Ibja), and the India Gold Policy Centre at IIM-Ahmedabad. It was decided to prepare a paper on ‘India good delivery rules for gold and silver bars’, said Ibja. A committee has been formed to formulate rules in this regard, with representatives from commodity exchanges and gold refiners. The idea is to have a code for the precious metals business, with enforcement.

The meeting also appears to have discussed the idea of a spot gold exchange, with a panel to recommend further on this.

The technical committee for the good delivery rules is expected to give its paper within 90 days, after which all stakeholders would be asked to comment. It would then go to the Union ministry of commerce and the Securities and Exchange Board of India.