BIS Calls for LBMA-Like Norms for Domestic Indian Gold Refiners

SEATTLE (Scrap Monster): The Securities and Exchange Board (SEBI) has urged Bureau of Indian Standards (BIS) to implement LBMA-like norms for domestic gold refiners. Recently, the National Stock Exchange (NSE) had approved Indian refiners for delivery on the exchange platform.

According to SK Mohanty, Whole-time Director, SEBI, the BIS should formulate a comprehensive set of rules, which should be compulsorily followed by exchanges and refiners, based on mutually agreed terms. The new BIS norms should be similar to that of London Bullion Metal Association (LBMA) including governance features. The laying down of such norms by the BIS could empower SEBI to instruct all exchanges to comply with it. This in turn will boost investors’ confidence in gold’s delivery on the exchange platform, he added.

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As per data, non-LBMA certified refiners account for market share of up to 55% in the country. This signals that there exists a market for India-refined non-LBMA gold. The increased acceptance of BIS gold bars will gradually reduce the country’s dependence on imported LBMA bars.