Centre finalising gold policy reforms, Budget rollout likely
Centre finalising gold policy reforms, Budget rollout likely: Calls meeting of stakeholders today to finalise national bullion board and exchange
My VIEW:
A welcome initiative. Long overdue. At least at this stage, Govt must not miss the chance to put in place an apex body responsible for gold management, coordinating the roles of various agencies and stakeholders interested in dealing in the yellow metal.
My VIEW:
A welcome initiative. Long overdue. At least at this stage, Govt must not miss the chance to put in place an apex body responsible for gold management, coordinating the roles of various agencies and stakeholders interested in dealing in the yellow metal.
Mapping domestic stock of gold, ensuring adequate supply of gold in the Indian market for various uses from pharmaceutical to jewellery manufacture and export, financing procurement, processing and marketing gold and gold-based products and purity of gold products sold in domestic markets and export could get covered under the ambit of the board.
Please read excerpts from my article on the subject published in April 2012*
Please read excerpts from my article on the subject published in April 2012*
M G Warrier
“INSTITUTIONAL
CHANGE
*Excerpts
from M G Warrier’s article “Gold management needs a makeover” published in The
Hindu Business Line, April 13, 2012:
“INSTITUTIONAL
CHANGE
The time is ripe for
authorities to think in terms of dedicated professional institutions at the
regional/state level, which will handle gold from a banking angle. An apex body
should be equipped with linkages for import and export of gold and gold products
with borrowing and lending capabilities.
States like Kerala have
successfully intervened in other similar sectors like chits/kuris and
lotteries, which were also areas of exploitation by vested interests. Private
players had to fall in line and function with discipline and self-regulation.
Establishment of ‘Gold
Corporations' with state participation could also be debated. Such an
institution can act as a depository where the gold possession of individuals
now in bank lockers and the pledged gold can find a safe shelter, provided the
purity can be ensured, and the ‘Corporation' can find the resources and skill
to deal in gold and retain the customers' confidence.”
Use the following link to read a detailed analysis:
Use the following link to read a detailed analysis:
M G Warrier
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