The government has said that the Securities and Exchange Board of India (SEBI) will also be the designated regulator for gold exchanges. SEBI’s job will be to ensure transparency in gold transactions.
Finance Minister Nirmala Sitharaman said in the budget speech for FY 2021-22, In the budget of FY 2018-19, the government had expressed its intention to set up a system of regulated gold exchanges in the country. SEBI will be notified as a regulator for this purpose. ”Analysts have termed it a very important step. This will ensure transparency and accountability.
Along with this, the government has also talked about strengthening Warehousing Development and Regulatory Authority. Finance Minister said that the authority would set up a commodity market eco-system, which would deal with warehousing as well as vaulting, assessing, and logistics.
The government has started the process of preparing a definite structure in view of the long-standing demand of setting up a bullion exchange with the announcement of making SEBI a designated regulator, according to Narindra Wadhwa, President of Commodity Participants Association of India (CPAI)
