Supreme Court of Nepal abolishes syndicate in gold distribution

In a groundbreaking decision, the Supreme Court of Nepal dismantled the syndicate system in gold distribution by commercial banks, marking a significant shift in the nation’s gold trade. The ruling enables gold traders to purchase imported gold directly from banks without needing membership in any business associations or federations.

The decision aims to foster transparency and equitable access in the gold market, ensuring a level playing field for all traders. Until now, non-members were banned from buying gold, granting an unfair advantage to affiliated traders and limiting competition.

“This move is a step towards fair trade practices and will boost economic inclusivity by removing barriers for independent traders,” remarked an industry expert.

The court’s verdict is expected to promote open market principles, benefiting both traders and consumers through increased competition and accessibility. Commercial banks have been directed to implement this policy immediately.

The landmark decision underscores the judiciary’s commitment to ensuring fairness in economic systems, signaling a new era for Nepal’s gold trade.