INSUBCONTINENT EXCLUSIVE:
SEBI has come out with a framework for making operational gold exchangesNew Delhi: Securities and Exchange Board of India (SEBI) has
unveiled a framework for making operational gold exchanges which will facilitate trading of yellow metal in the form of electronic gold
circular.The bourses can launch contracts with different denomination for trading or conversion of EGR into gold
conversion of EGR into physical gold.A common interface will be developed by depositories, which will be made accessible to all the entities
under the Securities Contracts (Regulation) Act 1956.Separately, the regulator through a notification on December 31, notified rules for
vault managers paving the way for operationalising gold exchange.As per the circular, supply of the physical gold, to be converted into EGR,
will be the fresh deposit of gold, coming into the vaults, either through imports or through stock exchange accredited domestic
refineries.The existing deposit of gold lying in the vaults, which meets the criteria and has never been out of the vaulting infrastructure,
can be considered for conversion into EGR.Vault managers will have to ensure that 'gold' to be converted into EGR meets the criteria.The
SEBI, will be eligible under this framework.To lower the costs associated with withdrawal of gold from the vaults, EGRs have been made
assaying agencies for checking the purity of gold, if required by the beneficial owner of the EGR at the time of withdrawal of gold from the
vaults.However, the charges towards assaying, transportation will be borne by such beneficial owner
trusted means of transportation for movement of gold from vaults to their preferred location
To facilitate the same, vault managers, at their discretion, may provide a list of logistics service providers on their website with
