Trading gold as electronic receipts
SECTIONS
Last Updated: May 26, 2021, 11:50 PM IST
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Synopsis
The plan now is to revamp the entire ecosystem for domestic trading and physical delivery of the yellow metal. The idea, rightly, is to bring about an efficient and transparent spot price discovery, have due assurance of gold quality, induce greater integration with financial markets, and lead to increased recycling of gold nationally.
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Capital markets regulator Sebi has put out a timely consultation paper on the framework for a national gold exchange. India is huge consumer of gold no doubt, of the order of 800-900 tonnes annually, and we have massive holdings too. Yet, India is a passive price-taker in the global gold markets, with precious little price-setting influence. The plan now is to revamp the entire ecosystem for domestic trading and physical delivery of the yellow metal. The idea, rightly, is to bring about an efficient and transparent spot price di
SEBI unveils roadmap for bullion trading
May 17, 2021
Proposes Electronic Gold Receipts to bring in transparency
Indian investors will soon see a new class of security known as Electronic Gold Receipts (EGR) that will be available for trading on the stock exchanges. Like shares, these EGRs will be held in demat form and can be converted into physical gold when needed. This is part of SEBI’s plan to allow trading of spot gold on the exchange platforms.
India is one of the world’s largest consumers of gold with annual demand of around 900-1,000 tonnes. But the purchase of spot gold is only on over-the-counter market as of now. In this year’s Budget, the Finance Minister had designated SEBI as a regulator for spot exchanges. The National Stock Exchange, BSE, the Multi Commodity Exchange and National Commodity & Derivatives Exchange are expected to be given permission initially to trade EGRs.
Net direct tax receipts rise 5%
Updated:
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FY21 collections exceed estimates at ₹9.45 lakh cr.; ‘fiscal deficit may be lower’
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FY21 collections exceed estimates at ₹9.45 lakh cr.; ‘fiscal deficit may be lower’
India’s net direct tax collections for the pandemic-hit financial year 2020-21 grew by almost 5% year-on-year to ₹9.45 lakh crore, exceeding the revised estimates of ₹9.05 lakh crore presented in the Union Budget and reflecting a gradual economic recovery in recent months.
Tax experts said that the Vivad Se Vishwas Scheme to settle pending tax disputes also helped bolster the collections, with net Corporation tax collections for the year at ₹4.57 lakh crore.
Commodity players urge FM to cut trading costs
April 01, 2021
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The Commodity Participants’ Association of India has sought the Finance Minister Nirmala Sitharaman’s intervention to rationalise the peak margin imposed by SEBI from December last year and rationalise cost of trading to salvage the sinking trading volumes on the commodity exchanges.
The regulator had implemented a peak margin on clients from last December to reduce leverage on intra-day positions in phases.
Shrinking volumes
As per SEBI norms, a peak margin of 25 per cent was levied on clients starting December and it will increase by 25 per cent progressively every quarter hitting the peak of 100 per cent by September quarter. Average daily turnover on exchanges has shrunk 27 per cent in last two months. Equity markets have also seen a sharp fall of 19 per cent in Average Daily Turnover (ADT) in this period, while equity futures volumes are down by 14 per cent.