CA Surendra Mehta has been appointed to the Precious Metal Advisory Committee.

CA Surendra Mehta, National Secretary of the IBJA, has been selected to the Precious Metal Advisory Committee.

The Indian Government has announced the formation of an independent Precious Metals Advisory Committee (PMAC) at the International Financial Services Centre Authority (IFSCA) to promote the growth of the precious metals ecosystem in Gujarat International Finance Tec-City (GIFT-IFSC) and India’s overall gold economy.

The PMAC will be essential in giving insights and recommendations on different elements of the precious metals ecosystem. Its responsibilities include strategic and operational considerations, product development, processes, and other pertinent challenges.

*The PMAC was established in response to the Union Budget 2018-19, which underscored the Government’s aim to develop a comprehensive gold policy. The goal of the strategy was to promote gold as an asset class and to build a regulated and consumer-friendly gold exchange mechanism in the country. Building on this, the Union Budget 2020-21 proposed the construction of an International Bullion Exchange (IIBX) at the IFSC, which would be governed by the IFSCA. This programme was created to strengthen India’s standing in the global bullion markets.

The IFSCA laid the basis for the IIBX in partnership with appropriate government ministries and agencies, the World Gold Council (WGC), the India Gold Policy Centre (IGPC), industry and trade organisations, and GIFT City. This exchange, which was formally established on July 29, 2022 by Hon’ble Prime Minister Shri Narendra Modi, is supported by a consortium of five major Market Infrastructure Institutions (MIIs) in India as well as GIFT-IFSC. The IFSCA has formed the PMAC as an autonomous body due to the complexity and size of the responsibilities at hand.

While the transition to ICEGATE, an electronic data interchange site for traders, is projected to considerably enhance trading volumes, the IFSCA underlines the need for increased liquidity and broader participation on the IIBX. To achieve this goal, the IFSCA intends to broaden the exchange’s portfolio of tradable goods, including derivatives and leasing products, in order to attract domestic and foreign banks, as well as other worldwide participants.

As the PMAC begins its work, stakeholders in the precious metals market are anxiously awaiting the committee’s recommendations and their potential impact on the sector’s future. The formation of the committee is a crucial step forward in India’s effort to create a healthy and regulated gold ecosystem, as described in the government’s ambitious Gold Policy project.

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