Why India needs a Spot Gold Exchange? Sanjeev Agarwal Chairman- FICCI Gems and Jewellery Committee CEO- Gitanjali Export Corp Ltd.

SURPRISING !! Instead of the GOVERNMENT, it is the BULLION Industry asking for a regulatory body to oversee the SPOT Bullion Exchange Transaction. The GOVT agrees with THE NEED but still NOT a priority FM’s comments in a meeting on Excise levy on jewellery“...while the entire gold imports is through the official bank channels…. we have no idea where the gold flow subsequently…” the Economic Affairs Secretary- Mr Shanktikant Das formally floated the idea at the IBJA conference in Dec 2015.

Need for Indian Spot Exchange TRANSPARENT Price Discovery based on domestic demand/ supply situation UNIFORM India Gold Price GST has already smoothened the process 3. ELIMINATE’s Counter Party Risk Informal channels have limitations 4. REDUCE Working Capital/ Imports (?) - No need for buffer stocks REDUCE Interest Costs. Gold Metal Loan <10% of working capital needs 6. ELIMINATE Quality Issues