Sebi proposes delivery-based gold exchange

MUMBAI: Markets regulator Sebi has published a consultation paper for allowing either launch of dedicated exchanges or platforms within existing bourses to trade only in gold. While the trading will be in electronic receipts of gold, the delivery would be in physical form in various parts of India, the paper proposed.
It also mooted trading in electronic gold receipts of various denominations of 1kg, 100gm, 50gm and, subject to conditions, for 5gm and 10gm.However, it proposed that physical delivery could be mandated only when an investor has accumulated gold receipts aggregating 50gm or more.
On Monday, Sebi also came out with draft norms for vault managers, who would be be a key part of the proposed gold exchange and platform. Sebi said the proposed gold exchange, encompassing the entire ecosystem of trading and physical delivery of gold, is extremely necessary to create a vibrant gold ecosystem in India, which is commensurate with its large share of global gold consumption.