Page 28 - Bullion World Volume 02 Issue 08 August 2022

Bullion World | Volume 2 | Issue 08 | August 2022

will provide a great opportunity for precious metal which will go a long way in supporting bi-lateral trade
trade. CEPA is hailed to boost the trade between the agreements.
two non-oil businesses. The industry must understand http://goldconference.in/presentation/Day2/
the advantages of CEPA and the benefits thereof. Apart Mohammad_Ayyob.pdf
from gold, the silver industry is also going to benefit
from the tariff elimination scheme. CEPA has put more Mr Pramod Mohan, Managing
emphasis on responsible sourcing in the sense that, Director, FinMet Pte Ltd
gold or silver that gets benefited under the CEPA has to Under the able leadership of
be certified by UAE of India good delivery bar. Mr Ahmed Bin Sulayem DMCC
was the first to come out with
Mr Sanjeev Dutta, Executive the protocol in terms of Dubai
Director – Commodities & Gold Delivery which is in line
Financial Services DMCC with OECD principles and global
UAE has been working on regulations. Unlike IIBX which has ISFCA and DIFC
creating a robust regulatory which has DFSA as regulators, DMCC does not have
framework. Similarly, on the regulators to oversee the enforcement. The transition
governance side, quite a lot of from the DGD era to UAE good delivery has been
developments are shaping up. significant, smooth and facilitated by the government.
Dubai Good Delivery for which DMCC is the custodian Recently the ministry has come out saying that all the
has been elevated as UAE good delivery with the refiners, numbering around 28 have to do responsible
support of key stakeholders. Another significant sourcing, failing which, they would be fined 5 million
development is the establishment of the Emirates dirhams. In the UAE, with the government acting as the
Bullion Committee chaired by the Minister of State regulator and enforcing agency, the country would be a
for foreign trade. DMCC is working on implementing secure market in terms of precious metal sourcing
a trading platform to track and trace gold flow. Most
of the trade pacts existing or worked upon ultimately On providing liquidity to the UAE bullion market,
point towards multilateralism in trade. A combination DMCC was all supportive and DGCX as an exchange
of the governance, platform and multilateral trade active in metal products realised an opportunity.
agreements augers well for the future of the bullion They came out with a product where fresh UAE
and jewellery trade. It is the time we define the good delivery bars go directly into DGCX warrants
standards to ensure responsible and seamless trade. being created and banks provide the liquidity. Now
http://goldconference.in/presentation/Day2/ that CEPA is happening, it is now a great product for
Sanjeev_Dutta.pdf providing liquidity for UAE refiners.
http://goldconference.in/presentation/Day2/
Mr Mohammed Ayyob, General Pramod_Mohan.pdf
Manager, SAM PRECIOUS
METALS Mr Chirag Thakkar, Amrapali
Under India – UAE CEPA refineries Industries
have more responsibility and a To touch on the important
significant role to play. Dubai milestones and timelines when
not only provides a very good the Indian government opened
foundation for business but also the consignment business in
for investments to create infrastructures. Regarding 1997-1998, it took 10-15 days
SAM Precious the company has invested heavily in to clear the consignment. There
infrastructure creation, and the company is well equipped was no system put in place then. In 2013 when dore
to support such comprehensive agreements. SAM has imports were opened up it took around 15-20 days to
created a capacity to produce 2 tons of gold per day clear the first shipment. These were followed by the
working 24/7. implementation of India's good delivery standard and
the recent big milestone is the launch of IIBX. The
The focus should be on the quality of service and recent India – UAE CEPA is an advantage for both
products to gain more customer confidence. SAM nations. Dubai as a nation is a very supportive partner
precious is accredited with UAE good delivery and also in the bullion trade and a significant bullion exporter.
an RJC gold custody. Apart from quality, SAM precious Government through TRQ and qualified jeweller
is more focused on compliance and accreditations criteria is trying to ensure that the bullion supply under

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