Shanghai Gold Exchange Mulls Entry to India’s Gold Import Market

SEATTLE (Scrap Monster): The Shanghai Gold Exchange is reportedly mulling ways to enter India’s gold import market. Incidentally, the country is second largest gold importer in the world after China.

The senior officials of the Exchange recently held detailed discussions with stakeholders of the Indian bullion industry. The participants of the meeting included representatives from the exchange, banks, India Bullion and Jewellers Association (IBJA) and the World Gold Council (WGC).

As India allows gold imports only by banks on consignment basis, there needs to be an intermediary for the exchange to import gold it. The exchange is said to have explored the possibilities for gold to be routed through the exchange to banks that have presence in both the countries. Other issues including delivery standards, tax on imports and potential legal barriers were also discussed in the meeting.

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