Stage set for gold spot exchange

Sebi may regulate it under powers for investors' protection

The much talked about exchange for spot trading in gold might be allowed soon after market participants found a way out in a closed-door meeting late this week.

So far, the stumbling block had been the manner in which a trading platform or an exchange in gold for spot trading would be regulated. A spot exchange for gold has already been accepted in principle by the Union Ministry of Finance. 

After deliberations, it was decided that the Securities and Exchange Board of India (Sebi) could regulate the gold spot exchange. Sebi already regulates gold futures, gold exchange traded funds (ETFs)