Niti Aayog moves to transform the regulatory regime of Gold Industry; aims to bring about transparency and accountability along with Ease of Doing Business
Niti Aayog has released ‘Transforming India’s Market’, a Committee Report (“Report”) dated 24th August, 2018 with a view to improve and standardize regulatory framework in the Gold industry. An in-depth consultation with several stakeholders was held with a view to improve the regulatory framework, policy design and domestic supply of Gold.
The following themes are covered in the Report:
- Incentive structure
- Ease of Doing Business
- Digital payments
- Bullion exchange Trade
- Gold Monetisation Scheme
This Report is an initiative to improve the current status of Gold Ecosystem involving manufacturers and retailers of the Gold Trading system. Various recommendations have been sought from Stakeholders to consolidate the Gold Industry into one place and streamline the process in creation and function of efficient gold markets.
Key highlights of the Report:
- Proposal to form a Gold Board of India (“GBI”): with a view to eliminate multiple regulatory authorities and encourage transparency and accountability, the formation of a singular authority GBI has been recommended. GBI would oversee all regulations of gold. Although, Gold as a foreign exchange asset would continue to be professionally managed by the Reserve Bank of India (“RBI”).
- GBI would have the responsibility to set up a portal dedicated to ‘Make in India in Gold’ which would provide all the information related to gold industry, government policies and programs.
- Proposed Bullion Exchange of India: With a view to protect the market participants and an efficient and trusted ecosystem for trading gold, the Bullion Exchange India has been recommended. In the proposed system, the Buyers can be provided with a monetisation option at the Exchange for investment purposes, with a visibility of all holdings. There would be a transparency of data on the exchange.
- Make in India Initiative for Gold Mining and refining in India: Making Gold mining viable to investors would promote ease of doing business with a single window clearance system. A comprehensive taxation policy is proposed to be formulated to align the current framework with the strategic needs of the gold mining sector. To reduce import duty on gold, domestic Gold Refining in India been proposed. India’s gold refining hub should be improved to cater to the international needs and allow free export of gold bullion.
Source: NITI Aayog