With India being the second largest gold consuming nation in the world but without industry wide uniform standards, the World Gold Council on Tuesday said it is time for the industry to have a self regulatory organisation (SRO).
According to Somasundaram PR, Regional CEO, India, World Gold Council, the Indian gold market is one of the world’s largest and diverse.
“Thousands of people work in the industry that serves this market and while most participants act in accordance with industry best practices, their efforts are neither standardized nor codified,” he said.
According to him, the Indian gold market is ready for the next stage with the setting up of an SRO.
The SRO will build on the Council’s earlier Swarna Adarsh Abhiyan initiative – devising a code of conduct for every industry vertical, providing certification for members who adopt these codes, engaging with stakeholders across the gold value chain and advocating for best practice, he said.
Somasundaram said, the SRO would serve as the conscience keeper of the industry and it is time for the Indian gold industry to have its own SRO.
The Indian gold industry, a $60.2 billion sector providing huge employment and drives the gross domestic product (GDP) growth has some challenges like fragmentation, unorganised, few national and several regional industry associations, lack of traceability no united voice in the industry to reinforce an image of trust, the Council said.
The SRO will develop the Codes of Conduct for every vertical and the members will be obliged to follow
The membership would be entirely voluntary, but the benefits would be manifold and clear to see.
According to the Council, the SRO should be chaired by an independent and influential figure from outside India’s gold industry.
Other board members should include a 50:50 blend of industry leaders, such as trade body representatives, and senior external figures, with strong public, regulatory, legal service record.