Gems and jewellery stocks jump after government removes dealers from the purview of the reporting requirement under the Prevention of Money Laundering Act (PMLA)
Mumbai: Gems and jewellery stocks on Monday jumped after the government removed dealers from the purview of the reporting requirement under the Prevention of Money Laundering Act (PMLA).
PC Jeweller Ltd rose 6.4%, Titan Co. Ltd 4.7%, Gitanjali Gems Ltd 6%, Tribhuvandas Bhimji Zaveri Ltd 5.5%, Tara Jewels Ltd 6.3% and Thangamayil Jewellery Ltd was trading 4.5% higher.
On 6 October, the government revoked 23 August PMLA notification that required dealers in precious metals, stones and other high-value goods, to maintain a record of all transaction of value exceeding Rs10 lakh, all cross-border wire transfers of more than Rs5 lakh and all purchase and sale of immoveable property of Rs50 lakh or more.
“This is a great news for the industry and we are thankful to the government for this decision. This is a positive step and will help boost the market sentiment. We look forward to good business during festive season,” PTI quoted All India Gems and Jewellery Trade Federation (GJF) chairman Nitin Khandelwal as saying.
Earlier, under the notification, any sale of gold above Rs50,000 required customers to furnish PAN (permanent account number) or Aadhaar card to the jeweller. However, the government has now rolled back this notification and there’s no requirement of furnishing such details. The decision was taken at the 22nd meeting of the GST Council chaired by finance minister Arun Jaitley.
“The move to relax compliance norms on gold purchases above Rs50,000 augurs well for mid-size jewellery firms. This would also open up gold as an asset class, which has so far been subdued along with real estate. Having said that, it will be interesting to see, how the government keeps a tap on the precious metals transactions as also the illegal smuggling of the commodity and ensures that the excess liquidity in the economy does not shift from formal financial assets,” said an analyst, on the condition of anonymity.
News Source : livemint.com