SEBI seeks comments on draft framework for Gold Exchange in India and SEBI (Vault Managers) Regulations, 2021
Published: May 17, 2021
By TIOLCORPLAWS News Service
MUMBAI, MAY 17, 2021: MS Nirmala Sitharaman, Finance Minister in her budget speech for FY 2021-22 has announced that SEBI will be the regulator for gold exchange and WDRA will be strengthened to set up the commodity market ecosystem. Post the budget announcement, following a discussion between the Ministry of Finance and SEBI, it has been decided that SEBI would regulate the entire ecosystem of the proposed gold exchange and SEBI would be the sole regulator for gold exchange including for vaulting, assaying and gold quality and delivery standards. To implement the budget announcement, SEBI constituted two working groups involving the stakeholders in the proposed gold exchange framework. Taking into consideration the recommendations of the two working groups, SEBI has proposed a framework for setting up of the Gold Exchange in India. Accordingly, a Consultation Paper detailing the proposed framework for the Gold Exchange in India and the draft SEBI (Vault Managers) Regulations, 2021 for regulating the gold exchange related business of the Vault Managers has been issued by SEBI today for public comments. The Consultation Paper is open for public comments till June 18, 2021 and can be accessed on the SEBI website.