The Directorate General of Foreign Trade (DGFT) on 14 January 2015 imposed a penalty of 100 crore rupees on Riddhi Siddhi Bullion Limited (RSBL) for violation of Reserve Bank of India (RBI) norms. The order was issued by Kavita Gupta, additional director general of foreign trade, Mumbai.
The order also cancelled its nominated agency certificate (NAC). NAC is the mandatory document needed for direct import of precious metals.
Why the fine was imposed
The DGFT had issued a showcause notice to the bullion trader in October 2014. According to the order, RSBL had obtained NAC in April 2013 for direct import of bullion. In FY14, RSBL had imported 550 kg gold and, according to the RBI circular, this entire quantity should have been exported back.
However, the company had shipped back only 350 kg while remaining 200 kg was supplied to the domestic market, violating NAC norms.
About Riddi Siddhi Bullion Limited (RSBL)
Riddi Siddhi Bullion Limited (RSBL) was established by Prithviraj Kothari and started its operations in the financial year 1997-1998.
RSBL is also the only company to be an authorised participant of all gold traded exchange funds (ETFs) in India. That is it acts as an online bullion trading platform for jewellers, wholesalers, jewellery manufacturers, hedgers and investors, which is crucial for jewellers in India.
Gold Exchange Traded Funds
A gold exchange-traded fund (or GETF) is an exchange-traded fund (ETF) that aims to track the price of gold. These units are traded on the Exchange like a single stock of any company.
When: 14 January 2015