Ground Report | New Delhi: SEBI approves gold exchange; The board of the Securities and Exchange Board of India on Tuesday approved the proposal to set up a gold exchange. Trading of gold in the Gold Exchange will be done through Electronic Gold Receipt (Receipt) ie EGR. This will bring more transparency to the spot price of gold.
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SEBI approves gold exchange
SEBI Chairman Ajay Tyagi said in a press conference that the representative instrument of gold will be called Electronic Gold Receipt (EGR). He said that other securities including shares, trading, clearing, and settlement of electronic gold receipts will also take place.
According to an earlier statement by SEBI, the proposed gold exchanges would enable efficient and transparent domestic spot price discovery, assurance in the quality of gold, promoting India’s good distribution standards with active retail participation, greater integration with financial markets. And the recycling of gold will increase. Country.
“The establishment of a regulated gold exchange is a landmark measure and in order to give due importance to the historic move, it is recognized that the terminology for the instrument should be unique and have a global resonance,” SEBI said.
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social stock exchange
Vivek Iyer, Partner, and BFSI Expert, Grant Thornton India, said: “Having a gold exchange formalizes an unstructured gold market and brings efficient price discovery and portfolio diversification benefits to a large investor base.”
Besides, the regulator has decided to relax the eligibility requirements related to shares with better voting rights, Sebi chairman Ajay Tyagi said at a press conference in Mumbai after the board meeting.
Under the creation of a social stock exchange, the SEBI board said that it would be used by social entrepreneurs for fundraising purposes. Further, Chairman Ajay Tyagi said, “Cannot specify a timeline for the social stock exchange, will coordinate with the government to take it forward.”
Speaking about SEBI’s approval on the creation of the Social Stock Exchange, Iyer said: “The approval for the creation of a Social Stock Exchange is an important step in the right direction to facilitate fundraising for NGOs in India, especially With the growing importance of ESG globally, India. The revision in delisting reinforces the increased commitment to the theme of ease of doing business in India.”
The board also approved a proposal to amend the de-listing framework following the Investors’ Charter for Open Offers and Securities Markets.