guidance is flexible and can be adapted to specific market characteristics in India, as has been done in London, Dubai and China. This flexibility includes adapting approaches to build on existing checks on imports of bullion
dore,” he added.
After dore import
norms by refiners are compiled, India will have standards for gold
refineries. India needs separate norms because 25,000 tonnes of gold
are held by households in the country and the rules must take into account old gold
that is sold in the market. Once these norms are in place, India should be able to export gold.
“The government should at some point in time consider allowing export of gold
bars refined by Indian refineries
after the country implements responsible gold
sourcing guidelines,” said Rahul Gupta, director, Bullion
Federation which constitutes refiners as founding members have read through the draft guidance prepared by India Bullion
& Jwellers Association and have provided feedback on same. This shall become the starting point on creating IRMS Guidelines
“It is now up to the Indian industry
to work together and develop the Indian guidelines, and more importantly, a robust audit mechanism. We encourage any audit of refiners to be overseen by a group of industry associations,” Gillard said.
Refineries importing gold
will be audited by auditors trained by experts and mostly the big accounting firms shall conduct them. The Bureau of Indian Standards has asked bullion
refineries to register with it by May 2018.
“The government could play a key role in ensuring a level playing field for refiners by eventually requiring them to go through this industry-led responsible gold
audit, so that everyone in India plays by the same rules,” Gillard added.
New norms soon
As of now, there are no guidelines for importing unrefined gold to India
China, Dubai and many other companies follow OECD guidelines for dore import
India plans to frame its own guidelines suitable for Indian bullion refining and jewellery business chain
India needs separate norms because 25,000 tonnes of gold held by households in the country, the rules must take into account old gold sold in the market
Refineries importi from old will be audited by auditors
Around 200 tonnes of dore is imported by India per annum