The plans still face many hurdles including that the state-level rather than central government has responsibility for gold-related matters in India, he said. Increased infrastructure such as gold vaults and reliable receipts for metal are also needed. The new exchange would bring more order and structure to the market, "which is what the government would love,” Somasundaram said. “It is not going to be a gold exchange like you see here, with bullion banks backing liquidity, it’s going to be very different."
