“EGRs were intended to create a regulated market for trading in gold and establish India as a global price setter for gold. While the EGR framework may need an overhaul, I urge the industry to train its participants and investors to trade only in regulated gold products,” Pandey said while speaking at an event organized by Commodity & Capital Participants Association of India (CPAI).“I think there are GST challenges around it,” a PTI report said, quoting Pandey.
Pandey said the regulator is analyzing structural, operational and regulatory challenges that have limited the adoption of EGRs. money control reported.
Investors can purchase regulated gold products in the form of commodity derivatives, gold ETFs and EGRs.
The Sebi chief emphasized that these regulated products ensure investor protection. The market regulator recently warned investors against digital or online platforms offering gold products as they pose significant risks to investors and could expose them to counterparty or operational risks.
“It has come to Sebi’s attention that some digital/online platforms are offering investors to invest in ‘digital gold/e-gold products’. Digital gold is being marketed as an alternative to investments in physical gold. In this context, it is informed that such digital gold products are different from Sebi regulated gold products as they are neither registered as securities nor regulated as commodity derivatives. They operate completely outside the ambit of Sebi,” said a press release issued last month.
Also read: Sebi warns investors against unregulated platforms offering digital gold products
Pandey also mentioned the downward pressure facing commodity markets amid rising upside risks such as geopolitics, sanctions, weather shocks and data center demand.
“Robust commodity derivatives markets are needed to turn this price volatility into a manageable risk. Markets set fair values that reflect future expectations. This transparent pricing is the highest form of market integrity,” he added.
Sebi has introduced a number of regulatory reforms for ease of doing business, including reducing the staggered delivery period from a minimum of five working days to three working days.
Also read: Sebi approves new regulations for stockbrokers to simplify compliance framework. 10 Key Takeaways
The recently approved new regulations for stockbrokers will enhance ease of compliance by ensuring simplified language and broadly structured provisions, Pandey said.
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