Page 47 - Bullion World Issue 7 November 2021

Addition of gold Bullion World | Issue 07 | November 2021

reserves from 2018

will help India's

sovereign rating:

IIM-A study

RBI's addition of gold reserves from 2018 will help the sovereign rating
of India, a research by Indian Institute of Management-Ahmedabad
released. The study of 48 countries by the premier institute's 'India Gold
Policy Centre' for two decades ending 2020 said high levels of central
bank gold reserves have a strong impact in reducing the sovereign
credit risk of that country in international markets.
Electronic
The researchers considered five-year sovereign credit default swap
(CDS) spreads for 48 advanced and emerging market countries over a
20-year period, from 2000 to 2020 for measuring the economy's default
risk, as per an official statement. Gold Receipts

(EGRs): Its
Source: https://economictimes.indiatimes.com

Functionality

in Indian Gold

Exchange

Indian gold market is now ready to
experience a gold exchange in the country,
which is going to be implemented to
trade the physical gold in shares after the
union government approves the same.
Spot gold exchange To run the ecosystem, the Securities
and Exchange Board of India (SEBI) has
recently authorized the introduction of a
- New investment gold exchange where the metal will be
traded in Electronic Gold Receipts (EGRs).
The BSE is now ready to be the pioneer of
avenue for Indians? the technology and the system to introduce
it in India.

Source: https://www.goodreturns.in
The Securities and Exchange Board of India approved guidelines for spot
gold exchanges at its board meeting on September 28th. The benefits of
such an exchange, according to a Sebi statement, would include efficient
price discovery, liquidity, and assurance in the quality of gold. It is also
expected to create a national pricing structure for gold. Despite being
the world’s second-biggest gold consumer, India currently allows trading
only in gold futures. The new gold exchange will compete with Sovereign
Gold Bonds (SGBs), Gold ETFs and Digital Gold. Firstly, let us see how
the gold exchange would work: The instruments representing gold that
will be traded on the exchange will be called Electronic Gold Receipts
(EGR). Any recognised stock exchange is allowed to launch trading in
EGRs in a separate segment. EGR is initially created when physical gold
is deposited with Vault Managers after assuring the quality of the gold.

Source: https://www.business-standard.com

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