Jewellers shine as RBI removes restriction on gold coin imports

MUMBAI: Jewellery Stocks were in limelight after the Reserve Bank of India allowed nominated banks to provide gold on loan to jewellers, thereby reducing their funding cost. The central bank also removes restriction on import of gold coins.

In a notification issued on Wednesday, the RBI said, “Nominated banks are now permitted to import gold on consignment basis. All sale of gold domestically will, however, be against upfront payments. Banks are free to grant gold metal loans.

Aiming to tame the then widening current account deficit (CAD), the central bank in August 2013 had prohibited imports of gold coins and medallions besides restricting inbound shipments of the metal.

Under the 80:20 scheme, which was withdrawn on November 28 last year, gold imports were linked with its exports.

At 09:28 a.m.; Gitanjali Gems was up 4.16 per cent, Titan was 2.23 per cent higher, Tribhovandas Bhimji Zaveri rallied 3.28 per cent and Renaissance Jewellery surged 4 .90 per cent