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World Gold Council Sets Up Full-Fledged India Unit

ByCommodity Trade Mantra
Published 06/03/2013, 07:15 AM
Updated 07/09/2023, 06:31 AM

The World Gold Council has set up a full-fledged local unit with a corporate structure in India. To date, this gold promoting agency was operating only as a liaison office.

A separate private company has been set up with effect from April 1.

A corporate structure will help WGC take up activities on a larger scale in the Indian market, including commercial arrangements with banks and gold industry players in the coming years.

Legally, the setting up of a corporate structure will help remove the disadvantages of operating as a liaison office, through which the WGC could only promote the existence of parent entity.

The Reserve Bank of India currently forbids a liaison office set up in India from entering into any commercial activity in the country.

The liaison office will have to maintain itself from remittances received from oversaes through the normal banking channel.

In 2011, the WGC signed a memorandum of understanding with the India Post for the promotion of gold medallion across India through the postal network.

Although the MoU could not be legally interpreted as an association, joint venture or partnership between WGC and India Post, some legal experts saw it as commercial given that WGC logo and goldmark were allowed to be used by India Post.

The WGC then also agreed to involve itself in the advertising and promotional activities of gold medallion sales through India Post.

This MoU, entered at a time when WGC had only a liaison office here, is unlikely to be impacted by the recent move to set up a local unit under a corporate structure here, sources said.

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