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Hybrid India Gold Conference 2021

By Bullion World

Published on December 10, 2021

The Hybrid India Gold Conference on 12-13 November 2021 in Jaipur, India brought together over 270 delegates, 25 sponsors and 44 speakers, with 130 delegates joining virtually during the two-day conference to discuss the theme “Reforms Shaping India’s Bullion Markets”. The highlights of the conference are presented below.

Gold is a part of India’s culture and a way of life of every Indian. The sector employs 6 million people and contributes 1.5% of GDP. India accounts for 25% of global gold consumption. Above-the-ground stock held by Indian citizens is estimated at 25,000 tonnes. On the supply side, 1% is mined, 9% is recycled, while about 90% is imported. On the demand side, 75% goes for jewellery making, about 7% goes for making coins and 2-3% for financial products. Thus, India is still passive in the global market despite strong demand.

India International Bullion Exchange (IIBX) is being set up at the Gujarat International Finance & Tec-City (GIFT City), Gandhinagar, Gujarat, India – the first special economic zone (SEZ) in India set up exclusively for the financial services sector. In addition to IIBX (to be launched in January 2022), GIFT City plans to host a world-class bullion refinery. It is expected that all bullion imports into India will be routed through IIBX. It is currently reaching out to significant bullion suppliers to India, global and regional bullion banks, leading LBMA/DGD refiners and other non-bank overseas suppliers to join the IIBX eco-system.

Meanwhile, the Securities and Exchange Board of India (SEBI) is developing guidelines for establishing a gold spot market for the domestic tariff area. Both IIBX and domestic gold spot exchanges trade electronic receipts (ERs). Guidelines and rules are being formulated to integrate IIBX and the domestic spot gold exchange system.

“IIBX can trigger a lot of reforms. It can help in price discovery, supply-chain integrity enforcement, and promoting gold’s financialisation in a big way. Soon, there will be significant liberalisation in foreign trade policy in so far as gold is concerned, as I see it. We want to promote IFSC as a hub for refineries and vaults. Our vision is to develop IFSC as one of the most competitive ecosystems for gold. Everyone has to progress for the world to progress and for progress to be sustainable”, Mr Injeti Srinivas, IFSCA chairperson, said about these developments.

“The success of IIBX depends largely on the participation of buyers and sellers in exchange. We must create an enabling mechanism for the participation of the international community. It is also essential for the domestic player to participate in the exchange within the permitted capital control regulation. IBJA would work closely with IFSCA in creating a world-class global exchange”, Mr Prithviraj Kothari, IBJA national president, said.

Complimenting India for the reforms in bullion space, Ms Ruth Crowell, CEO, LBMA said, “During my address at an IBJA conference three years ago, I suggested, “India should make a business case that works for India and also brings the world to India.” So, I am very happy to see so many developments during the last three years leading up to the International Exchange for Bullion in India. When we meet at next year IGC, I hope to congratulate you on two developments. First, a second LBMA accredited gold refiner in India. Second, a Bullion Bank that participates in LBMA gold price. It’s long overdue for India to have a seat at the LBMA table”.

Elaborating more on the gold spot exchange for domestic tariff area, Mr. V S Sundaresan, executive director, Securities and Exchange Board of India (SEBI), the regulator for capital and commodity markets, noted that SEBI will regulate the entire ecosystem of the Gold Exchange, including the vault manager.

The framework of the gold spot exchange is as follows. The entire transaction flow has been framed into three tranches. The first tranche is a deposit of physical Gold into the vaults and the creation of Electronic Gold Receipts (EGR). The second tranche will involve trading the EGR, and the third tranche will be a conversion from EGR to physical Gold. The framework includes the fungibility with the vault managers. Mentioning the commodity’s liquidity, to bring a large client base, especially the retail investor to this platform, the concept of a smaller denomination of EGR has been proposed. The investors will be allowed to buy and sell smaller units of EGR.

Some overseas suppliers present at the conference felt that IIBX is a very positive development for the Indian bullion market. Many felt that IIBX would also provide an excellent opportunity for Indian nominated banks to grow into full-fledged bullion banks.

Important quotes:

WGC and LBMA are working together on the “Gold 24/7 Plan”. The key aspects of this plan are gold needs to uphold integrity; physical gold should be fully accessible; and lastly, gold should be fully fungible and be freely traded across the global markets.

Mr David Tait, CEO, WGC

On request from India, LBMA proposes to review the following non-technical criteria in its LGD 2022 meeting. (1) Whether any other parameters be considered in lieu of tangible net worth criteria proposed for LGD applicant and (2) whether the criteria of ‘average 10 tonnes gold refined in the past three years’ be relaxed for a large silver refiner.

Ms Ruth Crowell, CEO, LBMA

Almost 4.5 tonnes and 5.7 tonnes of Gold was delivered at MCX, the largest commodity derivatives exchange of India in 2020 and 2021 (till October end) respectively.

Mr P S Reddy, MD & CEO, MCX

The industry needs to engage with government to evolve a standard operating procedure (SOP) for recycled gold

Mr Prithviraj Kothari, National President, IBJA

OTHER HIGHLIGHTS

  • Standard gold bullion imports into India is expected to cross 1,000 tonnes in FY22.
  • Digital gold platform providers recognise the risk and propose self-regulation.
  • Prof Arvind Sahay, Chair, IGPC, IIMA, shared initial results of the pan-India survey on “Understanding India gold consumers”.
  • Over 25 companies and individuals were conferred IGC Excellence Award for their achievements during FY20 and FY21.
  • Retail Gold Investment Principles (RGIP) initiative championed by WGC India (Swarna Adarsh Abhiyaan) launched formally.
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Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

SECRETARIAT SBMA-Emily-Oh

Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

SBMA-Albert-secretariat

Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

SBMA Committee-Photo-Andrew-Clarke

Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

SBMA Committee-Photo-Kazuya-Naoki

Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.