 "Gold")
The government on Monday said capital market watchdog Securities and Exchange Board of India (Sebi) will be the designated regulator for gold exchanges, which will infuse transparency in gold transactions.
"In the Budget of 2018-19, the government had announced its intent to establish a system of regulated gold exchanges in the country. For the purpose, Sebi will be notified as the regulator," Finance Minister Nirmala Sitharaman announced in the Union Budget 2021-22.
Further, Warehousing Development and Regulatory Authority will be strengthened to set up a commodity market ecosystem arrangement including vaulting, assaying and logistics in addition to warehousing, she added.
Narindra Wadhwa, President of Commodity Participants Association of India (CPAI), said the government has finally started the process of putting definite structure to the long-pending demand of establishing a bullion exchange by announcing Sebi as its designated regulator.
"India is one of the largest gold consumers in the world and the gold exchange will infuse to transparency in gold transactions and also enable India to merge as price setter of the commodity," he added.
Anup Khandelwal, President of stock brokers' association ANMI said Sebi has been regulating the capital markets for long and it has created a transparent market ecosystem. As a gold market regulator, Sebi will surely continue to further the cause of creating a better market.
In 2018, the committee, headed by Niti Aayog member Ramesh Chand, suggested that Sebi should be the regulator for spot commodity exchanges.
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