Revolutionising Gold: New Regulatory Body Set to Transform Indian Bullion Industry!

India is among the largest consumers of gold in the world. Hence any new development in the bullion industry attracts immediate attention. One of the most recent events was the announcement of a new regulatory body and framework for the bullion industry.

The Indian bullion industry has recently announced the creation of a self-regulatory body, namely the Indian Association for Gold Excellence and Standards (IAGES). This body has been created in collaboration with the World Gold Council (WGC). The key objective of setting up this new regulatory body is to help improve consumer confidence, build trust among consumers and industry and promote a fair, transparent and a sustainable business practice.

This new regulatory body IAGES will focus on ensuring regulatory compliance, creating code of conduct, and introducing a framework for audit and compliance across the value chain in the bullion industry. All the key associations and bodies such as Indian Bullion and Jewellers Association (IBJA), All India Gems and Jewellery Council of India (GJC), and Gem and Jewellery Export Promotion Council (GJEPC) would be governed under the aegis of this new regulatory body.

The entire bullion industry is expected to benefit from this move. Some of the key benefits can be listed as follows:

1. The new regulation framework will enhance consumer confidence. It will address the issue of instances of unethical practices by a small section of the market, thereby improving the overall trust by restoring consumer confidence, ensuring transparency and fair practices.
2.  The regulatory body will ensure that all players in the industry adhere to the prescribed standards in quality and ethical guidelines. This will bring consistency and integrity in the bullion industry, and its operations.
3. IAGES will facilitate and promote compliance among industry manufacturers, retailers and association members. New regulations and guidelines will address the concerns and issues present in the existing system. This will help curtail instances of malpractice by a small section of players and ensure a consistent legal framework for the industry.
4. A strict audit framework will be followed by the entities in the bullion industry and ensuring adherence to the defined compliance norms and standardisation are part of its recommendations. This will help identify concerns and issues in the bullion industry proactively and recommend corrective steps across the value chain.
5. By enhancing credibility and reliability, the Indian bullion market will become more competitive, achieve global standards, and set new benchmarks for performance in the global market. This will help attract more investments, technology, and export markets, contributing to the growth in the market both in terms of quality and quantity, making Indian bullion trade more efficient and quality conscious.

Overall, IAGES is expected to foster a more transparent, ethical, and sustainable bullion industry in India. The new regulatory body Indian Association for Gold Excellence and Standards (IAGES), is expected to be operational by early 2025.