World Gold Council to introduce code of conduct for Indian jewellery retailers

This will basically provide a platform for stakeholders, and those willing to be part of the initiative can conform to the code of conduct and bring in some standardisation and transparency in the industry, he added.

As a part of this initiative, the Council will conduct outreach programmes in various cities and get in touch with jewellers big and small.

Monitoring mechanism

Putting in place a monitoring mechanism would be crucial to ensure the success of the platform. Once a company or a jeweller signs up on the platform, it has to ensure that nothing comes from the grey market and all efforts, including a strong supply chain, are put in place so that the customer feels safe.

Once the code is strictly adhered to, it will build confidence in the minds of not just customers but also bankers, who have been shying away from lending to the sector due to the high risk involved, said Somasundaram.

Citing the example of the London Bullion Market Association (LBMA), he said: “The LBMA has done it in the refinery industry…they have a monitoring system — they even do blind samples. The entire bullion banking in the world relies on LBMA. We can do it in retail and improve the overall trust in the retail jewellery and gold industry.”