The way of gold stock exchange opened in the country: Now trading of gold can be done like a stock, by redeeming it, you will also be able to take gold; Silver ETF also approved

The Indian market consumes 700-800 tonnes of gold every year.

The way has been cleared for the opening of Gold Stock Exchange in the country. In this, trading of gold will be like shares in the form of Electronic Gold Receipt (EGR). Gold can also be taken by redeeming it. Markets regulator SEBI’s board meeting on Tuesday approved the framework for the Gold Exchange and SEBI (Vault Managers) Regulations, 2021. The face value of EGR for trading can be decided by recognized stock exchanges with the approval of SEBI.

EGR will have no expiry date and EGR holders can keep it for as long as they want and can surrender the EGR whenever they want and take gold from the vault at that time value. EGR will be notified as a security under the Securities Contracts (Regulation) Act, 1956. Any recognized or new stock exchange can start EGR trading in a different segment.

Must be registered with SEBI
The minimum value or weight up to which EGR trade can be done on the Gold Exchange is not yet decided. Companies with a net worth of more than 50 crores will be able to become Vault Managers in the Gold Stock Exchange. They have to register with SEBI. India is the second largest consumer of gold after China. Indian market consumes 800 tonnes of gold every year. In such a situation, the gold exchange can get a big success.

Transparency will increase in fixing gold prices
According to Ajay Kedia, director, Kedia Advisory, the exchange will be a national platform for buying and selling gold. With this, a national price of gold will be fixed in the market. At present, the price of gold in different cities of the country has increased to Rs. 2 thousand many times. There is a difference of every 10 grams.

SEBI also approved social stock exchange
SEBI has also approved the Social Stock Exchange. Social enterprises will be able to raise capital from the market through this. SSE will come under the regulatory purview of SEBI. However, the timeline for its launch has not been fixed. There are social stock exchanges in Europe, North-South American countries.