Paper Gold coming soon, courtesy Ace

Kathmandu, July 30:

The Nepali commodities market is going to witness Paper Gold soon.

Managing director and chief executive officer of Ace Development Bank Ltd (Ace) Siddhanta Raj Pandey and chief executive officer of Commodities and Metal Exchange Nepal Ltd (Comen) Vijay Satyal today signed an agreement here on behalf of their respective organisations to launch the Gold Exchange Traded Fund (GETF).

“Internationally, GETFs are the most sought after instruments by gold investors,” Promod Pandeya, head-compliance of Ace said.

He added that it was safe, secure and relatively cheaper as paper gold does not need any maintenance or incur charge in comparison to physical gold investment.

“It will be listed in Comen and traded, just like shares and debentures. It will also provide ample liquidity as well as a fair price discovery based on the international market,” Pandeya said.

He said that Ace, after massive market research, had entered into this venture with Comen that would rationalise the domestic bullion market to some extent.

Meanwhile, Comen has also brought a new business policy effective from July 16. Trading Brokers (TBs) trading below 50 lots in a month and doing so for three months will be called inactive brokers and such TBs transactions will be terminated. After termination, such brokers need to renew their membership with a deposit of Rs 50,000 that is non-refundable.

Similarly, brokers trading 50-100 lots will be liable to get 50 per cent. Those brokers trading 101-400 lots will be liable to get 60 per cent while those trading 401-700 lots will be liable to

get 72 per cent.

Also, those trading 701-1000 lots will be liable to get 80 per cent and all those trading 1001 and above lots will be liable to get 88 per cent of the total commissions. “TDS has to be paid on the given value,” states a press release.

Comen has fixed slabs for its brokers also. “Commission will be calculated in separate slabs for each lot size, depending upon the number of lots falling into their respective slabs,” the press release adds.