SEBI Cleared Gold Exchange Norms

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30 September 2021 Current Affairs:Securities and Exchange Board of India (SEBI), on 28 September, approved the framework for a gold exchange for vault managers.

Highlights
♦ The markets regulator’s approval for the proposals made within the Union Budget paves the way for gold exchanges to be started for trading in ‘Electronic Gold Receipts’ (EGRs) like within the case of other securities.
♦ Existing stock exchanges will be allowed to produce the platform for trading of EGRs, SEBI said after a meeting in Mumbai.
♦ The exchanges would decide the denomination for trading the EGRs and converting EGRs into gold with the approval of SEBI.
♦ The clearing corporation would settle the trades executed on the exchanges by transferring EGRs and funds to the client and seller.
♦ EGR holders, at their discretion, could withdraw the underlying gold from the vaults after surrendering the EGRs. 
♦ SEBI-accredited vault managers would be answerable for the storage and safekeeping of gold deposits, creation of EGRs, withdrawal of gold, grievance redressal and periodic reconciliation of physical gold with the depository records. 
♦ The vault manager would need to have a net worth of a minimum of Rs. 50 crore
 

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