Expects negative for Gems and Jewelry stocks on Reports of KYC necessary for Gold Purchase
Media reports that the government may make KYC mandatory for all cash transactions in the upcoming budget for purchase of Gold. According to a report in the Economic Times, jewellers fear government agencies may clamp down on them if they find any suspicious transactions after the introduction of Prevention of Money Laundering Act (PMLA) for the sector. At present, all asset classes barring gold require KYC documents for any transaction. But in the case of gold, one needs to submit KYC documents if he or she buys gold worth Rs 2 lakh or more. The government has been trying to make gold as an asset class at par with stocks, mutual funds and real estate. Expects negative for Titan, PC Jewelry and others Gold stocks