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Gem & Jewellery Export Promotion Council of India (GJEPC) has urged the government to mandate a certain portion of bullion imported by the nominated agencies through the proposed India International Bullion Exchange (IIBX) at GIFT City in Gujarat.
The Council also wants the government to consider the proposal to allow qualified domestic jewellers with a net worth of ₹25 crore to import gold through the bullion exchange in addition to the canalised system. The proposals were submitted to Commerce Secretary BVR Subrahmanyam after the stakeholders’ meeting.
Warehousing zones
The Council urged the government to enhance the regulatory ambit of International Financial Services Centres Authority (IFSCA) to Free Trade Warehousing Zones (FTWZs) in various SEZs for vaulting infrastructure.
GJEPC has already moved the NSDL and Directorate General of Export Promotion over the integration of IIBX systems with SEZ Online, Department of Commerce.
The Council wants the government to encourage exporters to use IIBX as a reference price for the export of jewellery in the long term and allow refiners of dore (raw form of gold) to deliver refined bars on IIBX.
Colin Shah, Chairman, GJEPC said the formation of IIBX will ultimately lead to the development of the India good delivery price and is expected to strengthen India’s position as an influential trading hub.
‘Efficient mechanism’
“It will provide an efficient price discovery mechanism and facilitate gold’s integration with other financial market segments,” he said. Besides providing impetus for the gold monetisation scheme, he said the “platform can facilitate old lending and trading, similar to gold (metal) loans”.
Somasundaram PR, Regional CEO (India), World Gold Council said the bullion exchange at IFSCA at GIFT City will herald a wave of reforms that should give India an active role in the global gold markets.
Last December, IFSCA notified regulations for setting up of bullion exchange including that of Clearing Corporation, Depository and Vaults.
NSE, MCX, India INX International Exchange, NSDL and CDSL have formed a holding company India International Bullion Holding IFSC for setting up International Bullion Exchange, Bullion Clearing Corporation and Bullion Depository in IFSC, GIFT City.
In May, the Sebi approved the framework for a domestic spot exchange to empower bullion banking and help successful implementation of gold monetisation scheme besides developing gold-backed products, according to the World Gold Council.
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