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Cogencis, Saturday, Aug 12
[C] WGC to submit report on spot exchange for gold to govt by end-Sep
By Shrikant Kuwalekar and Darshan Rane
PANJIM - The World Gold Council will submit its report on a spot exchange for gold to the government before the end of the September quarter, said Somasundaram P.R., managing director, India.
"Our report has been prepared after speaking to all industry participants. We are almost there...will submit the report towards the end of this quarter," Somasundaram told Cogencis on the sidelines of the India International Gold Convention here today.
World Gold Council was the first to recommend to the government a comprehensive policy on gold and the idea of creating a spot exchange for the yellow metal, which was seconded by the then economic affairs secretary Shaktikanta Das.
The India Bullion and Jewellers Association has already floated a 70:30 joint venture with BSE Ltd to set up a spot exchange for gold and has sought the government's approval for it. However, things had come to a standstill.
Concern over who will regulate the bourse--the Securities and Exchange Board of India refused to serve as a regulator--also posed as a roadblock.
Somasundaram said that though the global body supports the creation of a spot exchange, it has remained unbiased in compiling the report.
"We are not pushing our views in the report," he said. "We are saying why do or do not people want it."
Somasundaram said the World Gold Council has spoken to banks, traders, importers, refiners, commodity exchanges, regulators, and jewellers, as well as everyone who has stake in the bullion market.
He said it was irrational that banks are not allowed to buy back gold coins and they can't even buy gold locally. Banks can only import the precious metal, that too on behalf of its customers.End

Edited by Akshit Harsh

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