World Gold Coun­cil to soon re­lease blue­print on spot ex­changes to govt. & con­cerned stake­hold­ers

Not the right time to tem­per with gold duty or any form of curbs; fes­tive de­mand to re­main sub­dued

Assocham Bulletin - - AGRICULTURE - - So­ma­sun­daram PR wee man­ag­ing di­rec­tor-In­dia,

The World Gold Coun­cil (WGq would soon sub­mit a blue­print to the gov­ern­ment on spot ex­changes, its man­ag­ing di­rec­tor for In­dia op­er­a­tions said at an ASSOCHAM event held in New Delhi. "We have given a blue­print as a steer­ing com­mit­tee, we have drafted it and it is in the fi­nal stages, we will be re­leas­ing it very shortly," said Mr So­ma­sun­daram PR, man­ag­ing di­rec­tor-In­dia, WGC at an ASSOCHAM In­ter­na­tional Gold Summit.

He added, "This steer­ing com­mit­tee which has got all trade as­so­ci­a­tions, key in­ter­na­tional banks and bul­lion banks and it was led by us, has been work­ing on the spot

L to R: Mr. Uday Ku­mar Varma, Sec­re­tary Gen­eral, ASSOCHAM; Mr. Shivan­shu Me­hta, Head - Bul­lion, Mu~i Com­mod­ity Ex­change of In­dia Lim­ited; Mr. Ra­jesh Khosla, Chair­man - Emer­i­tus, MMTC - PAMP In­dia Pvt. Ltd.; Mr. So­ma­sun­daram P R, Man­ag­ing Di­rec­tor - In­dia, World Gold Coun­cil; Mr. S K Jin­dal, Chair­man, Na­tional Coun­cil on Com­mod­ity Mar­kets, ASSOCHAM; Mr. Pramod Agrawal, Chair­man, The Gem and Jew­ellery Ex­port Pro­mo­tion Coun­cil; Mr. S C Ag­gar­wal, CMD, SMC Group and Se­nior Man­ag­ing Com­mit­tee Mem­ber, ASSOCHAM

ex­change blue­print for last six­seven months, we have just now fi­nalised what the spot ex­change should be and we will be re­leas­ing that both to the gov­ern­ment, pol­i­cy­mak­ers and oth­ers."

High­light­ing that de­mand for gold is likely to re­main sub­dued in the cur­rent cal­en­dar year, Mr So­ma­sun­darm said that while the de­mand for goldin the first half was seven per cent down com­pared to last year, the WGC ex­pects it to pick up in the sec­ond half. "But it will still be an­other very sub­dued year for de­mand, we ex­pect the de­mand to be 700-800tonnes."

He fur­ther said, "There is no spe­cific cat­a­lyst to drive the de­mand up, while in­ter­na­tional gold price has come down by 8-10 per cent, In­dian price has gone up by 13-14per cent, GST (Goods and Ser­vicesTax) is also caus­ing a lot of tran­si­tion."

Mr So­ma­sun­daram, also said that re­forms like GST and de­mon­eti­sa­tion have ac­tu­ally led to gold buy­ing be­com­ing a lot more or­gan­ised, more so as grey mar­ket is also be­com­ing weak, thus it is a good time for gold to be­come main­stream be­cause of de­mand re­main­ing sub­dued.

He said that con­sid­er­ing gold de­mand is in­flu­enced more by in­crease in in­come, the WGC ex­pects that de­mand for gold will slowly go back, by 2020 to 800-900tonnes.

Mr So­ma­sun­daram also said that gov­ern­ment should re­frain from im­pos­ing any re­stric­tion on gold as mar­ket is very sub­dued right now. "The CAD is purely be­cause of oil and the ru­pee de­pre­ci­a­tion is be­cause equity mar­ket money is go­ing

out, it has noth­ing to do with peo­ple buy­ing­gold."

He said, "We hope that such curbs do not hap­pen now be­cause it will lead to grey mar­ket de­vel­op­ing, it will ac­tu­ally then make all the work done on pol­icy in the last two years, it will de­rail all the re­forms that are ac­tu­ally now be­ing planned."

Mr So­ma­sun­daram said that it is im­per­a­tive to step up trans­parency mea­sures to make gold trans­ac­tions trace­able, be­sides there is also need for in­fras­truc­ture and bul­lion bank­ing for gold to be­come an as­set class.

L to R: Mr. Shivan­shu Me­hta, Head - Bul­lion, Multi Com­mod­ity Ex­change of In­dia Lim­ited; Mr. Uday Ku­mar Varma, Sec­re­tary Gen­eral, ASSOCHAM; Mr. Ra­jesh Khosla, Chair­man - Emer­i­tus, MMTC - PAMP In­dia Pvt. Ltd.; Mr. So­ma­sun­daram P R , Man­ag­ing Di­rec­tor - In­dia, Wond Gold Coun­cil; Mr. S K Jin­dal, Chair­man, Na­tional Coun­cil on Com­mod­ity Mar­kets, ASSOCHAM; Mr. Pramod Agrawal, Chair­man, The Gem and Jew­ellery Ex­port Pro­mo­tion Coun­cil; Mr. S C Ag­gar­wal, CMD, SMC Group and Se­nior Man­ag­ing Com­mit­tee Mem­ber, ASSOCHAM L to R: Mr. Bhar­gava Vaidya, B N Vaidya & As­so­ciates; Mr. Jef­frey Rhodes, Founder & Mg. Con­sul­tant, Rhodes Pre­cious Met­als Con­sul­tancy, DMCC; Mr. Ra­jesh Khosla, Chair­man - Emer­i­tus, MMTC - PAMP In­dia Pvt. Ltd.; Mr. Shekhar Bhan­dari, Busi­ness Head - Pre­cious Met­als, Ko­tak Mahin­dra Bank; Mr. So­ma­sun­daram P R , Man­ag­ing Di­rec­tor - In­dia, World Gold Coun­cil; Mr. Shivan­shu Me­hta, Head - Bul­lion, Multi Com­mod­ity Ex­change of In­dia Lim­ited; Mr. Je­mery East, WGC

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