Sabyasachi Ray appointed member of newly formed Precious Metals Advisory Committee

PMAC is expected to enhance development of the precious metals ecosystem in the Gujarat International Finance Tec-City (GIFT-IFSC) and India’s overall gold economy

Sabyasachi Ray, Executive, Director, Gem & Jewellery Export Promotion Council (GJEPC), has been appointed as one of the members of the newly formed Precious Metals Advisory Committee (PMAC) at the International Financial Services Centre Authority (IFSCA). It is expected to enhance the development of the precious metals ecosystem in the Gujarat International Finance Tec-City (GIFT-IFSC) and India’s overall gold economy.  Somasundaram PR, MD & Regional CEO, World Gold Council, India, is the PMAC Chairman.

The Government recently announced the establishment of the independent PMAC, which will provide insights and recommendations on various aspects of the precious metals’ ecosystem. Its mandate encompasses strategic and operational considerations, product development, processes, and other relevant issues.

The creation of the PMAC stems from the Union Budget 2018-19, which highlighted the Government’s intention to formulate a comprehensive Gold Policy. The policy aimed to promote gold as an asset class and establish a regulated and consumer-friendly system of gold exchanges in the country. Building on this, the Union Budget 2020-21 introduced the establishment of an International Bullion Exchange (IIBX) at the IFSC, operating under the regulatory oversight of the IFSCA. This initiative was designed to enhance India’s position in global bullion markets.

The IFSCA, in collaboration with relevant Government departments, agencies, the World Gold Council (WGC), the India Gold Policy Centre (IGPC), industry and trade bodies, and GIFT City, laid the groundwork for the IIBX. This exchange, formally launched by Hon’ble Prime Minister Shri Narendra Modi on 29th July 2022, is supported by a consortium of five major Market Infrastructure Institutions (MIIs) in India and GIFT-IFSC. Given the complexity and magnitude of the tasks, the IFSCA has established the PMAC as an independent body.

While the migration to ICEGATE, an electronic data interchange portal for traders, is expected to boost trading volumes significantly, the IFSCA recognises the need for broader participation and increased liquidity on the IIBX. To achieve this goal, the IFSCA aims to expand the range of tradable products on the exchange, including derivatives and leasing products, to attract domestic and international banks and other global participants.

The committee’s establishment marks another significant step in India’s journey towards establishing a robust and regulated gold ecosystem, as outlined in the government’s ambitious Gold Policy initiative.

Courtesy: GJEPC India