Malabar Gold welcomes Sebi nod to gold exchanges

Malabar Gold and Diamonds Chairman MP Ahammed
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Malabar Gold and Diamonds Chairman MP Ahammed

Highlights

Malabar Gold and Diamonds Chairman MP Ahammed welcomed the decision of Securities and Exchange Board of India’s (Sebi) to approve the framework for setting up gold exchanges in the country.

Hyderabad: Malabar Gold and Diamonds Chairman MP Ahammed welcomed the decision of Securities and Exchange Board of India's (Sebi) to approve the framework for setting up gold exchanges in the country. The approval paves way for transparent price discovery, investment liquidity and ensuring quality of gold.

"This would also enable implementation of uniform gold rates across India. Increased investment in gold can also be expected as consumers receive assurance of quality," he said. India is the second-largest consumer of gold in the world.

Official data states that 800-900 tonnes of gold is being imported every year. However, the country continues to follow the London Bullion market prices. Sebi Chairman's statement that the concept of gold exchanges is aimed at moving India from being a price taker to a price setter is a remarkable step.

Malabar Gold and Diamonds has already introduced "One India, One Gold Rate" and all our retails shops across the country levy same price for 100 per cent hall marked jewellery since 2020 proving that uniform gold rate is quite possible.

Rates being fixed internationally for gold are applicable to the whole country. Secondly, customs duty is the same. Moreover, GST rates are also uniform and applicable to all States. Malabar Gold believes that it is imperative to prevent unauthorised manufacturing of jewellery to achieve the objectives.

"Along with these positive steps, gold smuggling also has to be curbed lowering customs duty. Gold has a profound impact on the value of world currencies. We know that one of the reasons the USD remains internationally powerful is the huge gold reserves of the US," Ahamed said.

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