Commodity Participants Association of India (CPAI) has knocked GIFT City Regulator IFSCA’s doors, seeking a more accessible entry point for Qualified Jewellers (QJ) in the silver segment of India International Bullion Exchange (IIBX).
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“We have recently requested IFSCA to introduce a novel category for Qualified Jewellers in the Silver segment. Silver-focused jewellers and traders must be allowed with a lower net worth criterion that is commensurate with requirements of this category”, Narinder Wadhwa, President , CPAI told businessline here.
Wadhwa said he had recently met the IFSCA Chairman K Rajaraman in this regard. Allowing silver specific participants with a networth of ₹ 10 crore or above to operate as QJ will increase participation and volumes. This adjustment would not only acknowledge the unique dynamics of the silver market but also encourage the active participation of a broader spectrum of businesses, it was submitted.
Currently, a company must have a minimum net worth of ₹25 crore to be eligible as a QJ on IIBX. This criterion applies to both Gold and Silver.
CPAI has also submitted to the International Financial Services Centres Authority (IFSCA) that the unit value of silver at $ 23 per Troy Ounce is considerably lower than $ 2000 per Troy Ounce for Gold.