Jewellery makers have rallied by up to 20% after the Reserve Bank of India (RBI) eased gold import rules by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports.
Titan Company, Gitanjali Gems, PC Jeweller, Thangamayil Jewellery, Tribhovandas Bhimji Zaveri (TBZ), Renaissance Jewellery, Rajesh Exports and Shree Ganesh Jewellery House are up 5-20% each on the BSE.
The Central Bank in July last year had imposed severe restrictions on gold imports in order to check the burgeoning current account deficit and sliding rupee.
Under the 20:80 scheme, an importer has to ensure that at least one—fifth, or 20%, of every lot of imported gold is exclusively made available for the purpose of exports and the balance for domestic use.
The decision to ease the restriction follows representations from jewellers, bullion dealers, banks and trade bodies.
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