I-T raids lead to vain efforts as RSBL hand over proof of fair bullion deals

RSBL (RiddiSiddhi Bullion) is well known Indian bullion organization, operating within the heart of the gold trading hub, Zaveri Bazaar. The company offers real time OTC physical bullion trading at spot (RSBL SPOT) and if clients do not require delivery, the purchased bullion can be stored securely at no extra cost.

Founded in 1994, RSBL is proud of holding the largest variety of bullions and coins across India. During the year, 2013, Around 100 officers from the income tax (I-T) department raided 56 locations of RiddiSiddhi Bullions Ltd (RSBL), over hawala links and examined documents related to the company's import and export of bullion. I-T also investigated the company's alleged link with betting on the Indian Premier League (IPL).

This sweep was conducted as routine I-T survey, which had no connections with the IPL, hawala links or bogus import-export of precious metals at all. This survey had been done across various companies in Mumbai and not only at RSBL.

Furthermore, RSBL company is extending full co-operation with I-T officials and presented legal proofs of their import-export transactions which were approved and accepted by the Court. RSBL specialises in bars and coins in popular precious metals such as gold, silver and platinum. The company primarily focuses online sales of coins and delivers to customers' doorsteps.

Its bullion sales through e-commerce - RSBL Spot - through over 2,500 locations covering almost all
cities and major towns across the country has been very popular among jewellery manufacturers and
retailers for competitive pricing and prompt delivery. Individual consumers have also opted for online gold coins purchase from RSBL Spot.

Gold 2017 Long term Investment allocation

The Indian gold industry is considered to be one of the largest industries in the world. The industry has witnessed a lot of ebb and flows last year, right from excise duty rates to introduction of PAN card for purchase of gold and the demonetisation drive. All these factors, along with introduction of goods and services tax (GST) and the election of Donald Trump as US president will together frame the outlook for gold in 2017.

Experts say the government can clarify that if women inherit gold up to 500 gm, it can be considered as ‘stree dhan’ (women’s property). And if such inheritance can be supported by documents — bills or will of gift, deed etc — then such gold, when deposited under the GMS, no questions on the source will be asked.  There are still a few measures on which the government is working. The first is compulsory hallmarking of jewellery. The government now has the powers to penalise the holders of jewellery that is not hallmarked. However, early this month the government prescribed that only three standards will be followed and 14-, 18- and 22-carat jewellery could be hallmarked.

This year India will implement its own gold standards. This means gold refined by Indian refiners following prescribed standards will be accepted as valid tenderable gold in accordance with Indian standards on commodity exchanges and international markets. At present the global benchmark for refined gold is the gold standard fixed by the London Bullion Market Association (LBMA)

The government’s fight against black money and corruption began with the income declaration scheme. The denomination of R500 and R1000 notes is a sequel to same and we support this relentless fight against corruption. Demonetisation is definitely going to leave its effect in the initial months of the coming year. We may not achieve a good sales figure in comparison to previous years, but the aspiration that people have for the yellow metal, makes jewellery buying an important part of the season. Besides, it is a good time to invest in gold as the rates are low and it is expected to be the same for the next quarter.

All these factors are having an adverse impact across the sector. However, high end jewellery brands are largely a part of an organised market and transactions are done on the basis of an invoice. Earlier, a large portion of the population bought gold jewellery for investment and also as a status symbol.

Gold purchases, of late, has been more need-based. In 2017, consumers’ preference would be more for lightweight jewellery with emphasis on innovative jewellery designs. Customers today prefer buying jewellery that they can actually wear rather than keeping it in the lockers. Everyone is looking to buy jewellery that can be worn, which largely includes earrings, chain and pendants, rings, nose rings, etc.

Riddhi Siddhi Bullion Ltd denies breach of violations from DGFT and ED

Riddhi Siddhi Bullion Ltd (RSBL), a city-based bullion trader, has come under the scanner of Enforcement Directorate (ED) for alleged violation of gold export-import norms of the Reserve Bank of India.

The development comes at a time when RSBL is fighting a legal battle over Rs 100-crore penalty, imposed by the Directorate General of Foreign Trade (DGFT), for not adhering to the RBI's export rule. RSBL on the other hand has submitted required proofs and  legal documentations affirming no involvement which has been approved by the court.

However, soon after the notice was issued, RSBL got relief from the Bombay High Court, which stayed the DGFT's order. RSBL also claimed it had no prior information about the new norms of RBI, at the time of the import order.

When contacted, RSBL chairman Prithviraj Kothari said the company has not received any such order.

In FY14, DNA stated that RSBL had imported 550 kg gold and as per the RBI circular, this entire quantity should have been exported back, however, it had shipped back only 350 kg while remaining 200 kg were supplied to the domestic market, thus concluding that the company violated NAC norms as well as the RBI circular, being ignorant that RSBL was not notified about the circular change and the import of goods took place under the RBI’s regulations before the circular change.

RSBL, in its reply to the notice, had said that they did not breach any conditions and have legal documentations supporting its goodwill.

Gold makes a steady start for 2017

Gold and silver were trading flat with marginal gains in early trade on the first day of Calendar 2017 due to lack of global cues amid subdued buying by jewellers, investors and industries.

The yellow metal was trading 0.20 per cent, or Rs 56, higher at Rs 27,501 per 10 gm at around 10.30 am (IST), while the white metal was trading 0.26 per cent, or Rs 103, higher at Rs 39,152 per 1 kg on the Multi Commodity Exchange (MCX).

However, silver declined by Rs 100 to Rs 39,300 per kg owing to reduced offtake by industrial units.

Traders said absence of cues from global markets which are closed, mainly kept gold prices unaltered here.

In the national capital, gold of 99.9 and 99.5 per cent purity ruled flat at Rs 28,300 and Rs 28,150 per 10 grams, respectively. It had lost Rs 200 on the last trading session of 2016 on Saturday.

SMC Investment and Advisors in a research note said, “Gold can move in the Rs 27,300-27,500 per 10 gm range while silver can move in the Rs 38,700-39,400 range in the near term.”

Gold prices eased on Friday as gains from a weak dollar was offset by profit taking at the end of a year in which bullion gained about more than 8 per cent, snapping three years of declines.

Director of RSBL, Prithviraj Kothari is of the view that since Gold prices tumbled to 10-month lows on December 15 after the Fed hiked interest rates, this signaled could be an expected rise in rates more quickly than previously anticipated in 2017.