To slash gold demand, make equity market more attractive: Uday Kotak
The move to link Gold ETF with deposit schemes will help increase physical availability of gold in the market, as a part of the gold lying in stock will be brought into circulation meeting the demand of gems and jewellery trade.
Market regulator Sebi and the Reserve Bank are likely to come out with notifications on Gold ETF and gold deposit schemes in two to three weeks.
Gold imports in 2011-12 amounted to USD 56.5 billion and in the current financial year, till December, they are estimated at USD 38 billion.
Traditionally, India has been the world's largest consumer and importer of gold.
Outflow of the foreign exchange on gold imports is impacting country's CAD, which has widened to USD 38.7 billion or 4.6 per cent of the GDP in the first half of the current fiscal.
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