Now, these standards will need to be approved by the capital market regulator. But that is seen as only a formality.
James Jose, secretary of the Association of Gold Refineries and Mints, said: "India good delivery standards have now been announced. Now we need an autonomous regulator to ensure proper implementation. The regulator must have enough powers to get these implemented."
In the past couple of years, India's annual gold imports have been 700-750 tonnes. About 280 tonnes, or 40 per cent, of that was unrefined dore gold which could not be delivered on bourses like MCX. When cinders sell old jewellery that also comes for refining, that market is 200 tonnes per annum.
If a jeweller is buying back this gold from refineries, he may accept the bullion that is not meeting Indian standards. However, for all these, regulations by a prospective regulator will be crucial.
A few years ago, industry participants prepared details on regulations and who should regulate refineries. The Centre will now have to take a call on this.