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SEBI proposed Framework for Gold Exchange

Published on May 19, 2021
Current Context: The Market Regulator, Securities and Exchange Board of India (SEBI) has proposed a framework to set up a gold exchange in which the yellow metalwill be in the form of electronic gold receipts.
SEBI proposed Framework for Gold Exchange
  • This move will allow having a transparent domestic spot price discovery mechanism.
  • The gold exchange instrument is the ‘Electronic Gold Receipts (EGR)’, which is intended to ‘one nation one price’ for gold.
  • In the budget session for 2021-22, FM has announced that SEBI will be the regulator for gold exchange and Warehousing Development and Regulatory Authority (WDRA) will be strengthened to set up the commodity market ecosystem. In this regards, the SEBI has taken its move to regulate the gold exchange mechanism in the country.
  • The move by SEBI for issuance of EGR in gold exchange, will allow transparency in domestic spot price discovery, assurance in the quality of gold, promotion of India good delivery standard with active retail participation, greater integration with financial markets and augment gold recycling in the country.
  • The SEBI has released draft norms for vault managers and they will be registered as a SEBI intermediary.
  • Static Part: 
    • HQ of SEBI: Mumbai
    • Chairman of SEBI: Ajay Tyagi

Question: 

Q.1 Which organisation proposed a framework to set up a gold exchange in which the yellow metal will be in the form of electronic gold receipts?
a. Central Depository Services Ltd
b. SIDBI
c. RBI
d. SEBI
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