RBI fresh gold import curbs hits jewellery stocks

RBI fresh gold import curbs hits jewellery stocks
Shares of the jewellery retailers came under pressure on Friday on the Bombay Stock Exchange (BSE) after the Reserve Bank of India (RBI) unveiled fresh measures to curb gold imports.

RBI, in a notification on Wednesday evening, said import of gold in the form of coins and medallions is now prohibited. RBI also mandated nominated banks/nominated agencies and other entities to ensure that at least one fifth, i.e., 20 per cent, of every lot of import of gold imported to the country is exclusively made available for the purpose of exports and the balance for domestic use.

Further, RBI said gold shall be made available for domestic use only to the entities engaged in jewellery business/bullion dealers and to banks authorised to administer the Gold Deposit Scheme against full upfront payment.

Following the measures, shares of leading jewellery firms such PC Jewellers, Rajesh Exports, TBZ were down up to 10 per cent on BSE in the morning trade.

Dion Global Solutions Ltd.

Read more about: pc jeweller, gold import, coins, medallions
Story first published: Friday, August 16, 2013, 12:21 [IST]
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