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Gandhinagar, March 11, 2020
The steering committeee of the World Gold Council (WGC) met recently at the Gujarat International Fin-Tec City (GIFT), India's first International Financial Services Centre (IFSC), to discuss about developing a comprehensive plan for setting up an International Bullion Exchange in GIFT IFSC.
This follows the announcement made in the Union Budget 2020-21 about setting up of an International Bullion Exchange in GIFT IFSC.
A press release from GIFT said the meeting also discussed various aspects of intituting an ecosystem for an organized and transparent trading of bullion in GIFT IFSC.
"As announced by the Finance Minister, International Bullion Exchange at GIFT IFSC would ensure better price discovery of gold, strengthen India’s position in the global bullion market and create more employment opportunities in this field," the release said.
The release said that, in a span for four years, GIFT IFSC has developed a competitive environment for international financial services such as banking, insurance, capital markets and fin-tech. With the addition of bullion exchange, the ecosystem will be complete and will add depth to the bullion commodity market.
Speaking on the occasion, Surendra Mehta, National Secretary – IBJA, said the International Bullion Exchange in GIFT City would open the door for international as well as domestic players, through its subsidiaries, to participate in the exchange.
"This exchange has capacity to become world's largest bullion exchange as there are already attractive tax incentives for participants. Not only Indian but also world's bullion industry is excited to formally start trading on this exchange. It's a brilliant step taken by the Government with all infrastructure like bullion refinery, testing laboratory and exchange at GIFT City to bring transparency to the entire gold eco-system. Many other financial products like gold saving account can also be started by bankers and NBFC in GIFT City with IFSC Authority as the regulator," he said.
Tapan Ray, MD and Group CEO, GIFT City, said, “International Bullion Exchange is an important element of a vibrant financial hub. For an emerging financial hub like GIFT IFSC, the time is apt to establish the bullion exchange as this will provide impetus to investments and international transactions. We are happy that the implementation on this front has begun jointly by all stakeholders in the value chain. The strategy laid out by them will be an important in realizing the establishment of a world class bullion trading mechanism for GIFT IFSC.”
Somasundaram PR, Managing Director, World Gold Council, said, "The industry steering committee, representing the entire supply chain, including global banks and exchanges, met and debated the opportunity of an organized bullion trading eco-system in GIFT City and concluded this could be a game changer. It was agreed to present a joint industry paper on key steps in the next few weeks for successful implementation."
The meeting was attended by industry leaders representing World Gold Council, Exchanges, Bullion Associations, Jewelers Associations, banks, international vaulting service providers and GIFT City officials.