Mr. Harsh P. Thakkar, Vice Chairman, Western region, CPAI, Mr. Tanil Kilachand, Co Chairman, IMC-ERTF, Mr. Mrugank M. Paranjape, MD & CEO, MCX, Mr. Deepak Premnarayen, President, IMC, Mr. S. K. Mohanty, Executive Director, SEBI , Mr. P.K. Singhal, President & WTD, MCX and Mr. Rajesh Khosla, MD & CEO, MMTC PAMP Enhanced hedger participation is imperative for scientific price discovery
· Options trading in gold will help deepen and widen the market
· India can transform from a price taker to a price setter
· Case for a national online Spot Exchange
Mumbai, December 22, 2016: India’s ravenous appetite for gold consumption is well known. The country is the world’s largest importer and second largest consumer. ‘For India to be in a position to set global prices rather than be a price-taker, institutional and market reforms are necessary’, according to a host of expert speakers at the national seminar jointly organized by IMC Chamber of Commerce and Industry and India’s premier commodity futures exchange Multi Commodity Exchange of India (MCX)
Speakers included Mr. Mrugank Paranjpe, MD & CEO, MCX; Mr. S. K. Mohanty, Executive Director, SEBI (the market regulator) and a host of domain experts including Mr. Rajesh Khosla, MD & CEO, MMTC-PAMP.
Suggesting that the consumption volumes justified a further widening and deepening of the gold derivatives market, speakers pointed out that expansion of hedger participation and introduction of new products and instruments is sure to help achieve the objective.
According to Mr. Paranjpe, “rationalisation of tax structure including Commodity Transaction Tax should top the policy agenda. In terms of institutional reforms, he said that a transparent gold leasing market, upgraded standards of gold refiners and encouraging gold mining deserve close attention.”
In his welcome address, IMC President Mr. Deepak Premnarayen pointed out that the gold market faced issues such as high rates of customs duty, excise duty on gold jewellery and incidents of unauthorised imports. “The country’s gold trade needs to be reformed and more transparency brought in. The important message is, for a vibrant consumption market such as India, long-term policy clarity in more critical than other parameters such as price and availability”, he asserted.
Mr. S. K. Mohanty, ED, SEBI, urged the exchange and the market participants to work towards enhancing hedger participation. He said that new instruments, new products are being introduced by the regulator to bring new participants into the marketplace. Options trading is one such instrument, he remarked.
The business sessions covered topics as varied as revitalization of Gold Monetization Scheme and Gold Bond Scheme; a reforms agenda for making India a price setter and case for establishing a Gold Spot Exchange.
The seminar concluded with a price and market outlook session where global and Indian market drivers were discussed.
About IMC:
Set up in 1907, IMC Chamber Of Commerce and industry is an apex Chamber of trade, commerce & industry with headquarters in Mumbai. It has about 2700 direct members, comprising a cross section of the business community, including public and private limited companies and over 225 trade and industry associations through which the Chamber reaches out to over 2,50,000 business establishments in the country. IMC is the first Chamber in India to get ISO 9002-2000 certification which has since been upgraded to ISO 9001: 2008. IMC is the only business Chamber in India with which the Father of the Nation, Mahatma Gandhi, was associated as an Honorary Member.