Page 26 - Bullion World Volume 02 Issue 01 May 2022

Bullion World | Volume 2 | Issue 01 | May 2022

risk management & operational specified by SEBI. an Electronic Gold Receipt shall
efficiency. The trust earned over the • The Vault Manager shall have a get created in the name of such
last 18 years reflects in the critical Standard Operating Procedure depositor as the beneficial owner.
ongoing projects that are managed (SOP) in respect of all the Sequel shall ensure that the
by Sequel for various government recognised vaults. information captured at the time
of creating the Electronic Gold
Receipt is accurate. There will
Role of Sequel as the Vault Manager

institutions and international & Deposit of Gold be strict procedures for periodic
domestic banks. Seller of gold on the spot exchange reconciliation of physical gold
shall first deposit the gold with with the corresponding record
Criteria for appointment as a Sequel for conversion into of Electronic Gold Receipts
Vault Manager Electronic Gold Receipts (EGRs). maintained by Sequel and the
• The Vault Manager shall be a An EGR cannot be created without depositories.
body incorporated in India. underlying physical gold. Sequel
• The Vault Manager shall have shall check the gold standard, Withdrawal of Gold
a minimum net worth of fifty weigh the gold bars and check EGR may change multiple
crores rupees. necessary documentation. Sequel hands before the buyer opts to
• The Vault Manager shall have shall furnish acknowledgement rematerialise it by taking physical
the infrastructure for a safe receipt to the depositor at the delivery of gold from Sequel.
deposit, storage and withdrawal time of the deposit and collect A beneficial owner seeking to
of gold. appropriate documentation to withdraw gold from the vault
• The Vault Manager shall have ensure that the gold is traceable. shall place a request with the
adequate insurance to cover depository. After satisfying the
payment of charges due to Sequel,
losses. Creation of Electronic Gold
• The Vault Manager shall have Receipt (EGR) the depository shall intimate its
approval for withdrawal of gold to
adequate and competent EGRs will be traded on domestic Sequel. After receiving instructions
persons employed who have exchanges as a security instrument. from the depository, Sequel shall
the required experience, Every Vault Manager registered hand over the gold and extinguish
knowledge, and ability to with SEBI shall have a common the Electronic Gold Receipt(s),
manage the Vault Manager's interface with the depository to subject to the beneficial owner
business. create and extinguish Electronic producing acknowledgement
• The Vault Manager shall fulfil Gold Receipts. Upon acceptance of receipt and other documents
the fit and proper criteria of the gold from the depositor, specified by Sequel.

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