Expectation from Budget - Commodity Derivative Market: Angel Broking

Mr. Anuj Gupta (DVP - Commodities & Currencies Research, Angel Broking):

- Possible reduction of import duty on Gold from the current slab of 10% to around 6%, is what the gold industry expects. By this jewellers may increase import gold in a right manner. The smuggling of gold may reduce if import duty reduces.

- Comprehensive Gold policy was already a part of the Fiscal Union Budget for FY 19. However, there has not been much progress in this regard, and we hope that government will take the necessary steps for the introduction of "Spot Gold Exchange" in the budget FY 20. Spot Gold exchange will encourage the house hold gold to sell in open market. Anybody can access the exchange and take delivery and give delivery in the exchange at spot market prices as per spot market quality. We have seen that the quality disparity and price disparity in India in different states. To Curb the disparity it may help.

- Tax rebate / Incentives for those who have hedged their physical exposures in the futures exchange in order to increase the participation in Commodities market. To increase the participation in commodity derivative market should encourage physical traders / companies to hedge their physical position with commodity derivative market. To encourage it should be giving the incentive or Tax rebate kind of attraction may support to increase participation in commodity derivative market.

Source : Equity Bulls

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