Dubai: The legions of Indian consumers holding gold will have nothing to worry about the new government regulations on 6-digit hallmarking that comes into full effect from April 1. The new requirements will also not have any bearing on gold brought into the country by expats or residents returning to India.

The hallmarking change also will not "impact in any way Indian expats wanting to sell their gold holdings at any point in India," said Abdul Salam K.P., Vice-Chairman of Malabar Gold & Diamonds. "Gold retailers in India will still buy that gold based on the metal's price, melt it and apply for the new hallmarking. The hallmarked gold will be sold thereafter in the stores.

"But there is no threat to individuals bringing gold into India and wanting to sell to take advantage of the lower retail price if bought in the UAE or Gulf."

But retailers in India will have their work cut out – they have to ensure that every bit of gold sold at their stores from April 1 have the new hallmarking standard. That, according to multiple industry sources, is going to be one difficult task.

With the mandatory 6-digit hallmarking, the Indian government wants to clamp down on gold entering the Indian retail market via smuggling or through other ‘parallel’ channels. It replaces the 4-emblem hallmarking that was prevalent earlier.

Retailers have been told to get all the gold they carry in their showrooms or order books feature the 6-digit hallmark by April 1, which coincides with the start of a new financial year in India. This is where the difficultly lies.

“There are 500,000 licensed gold retailers in India – and many still have a mix of the old and new hallmarked gold in their stores,” said Abdul Nazar, senior member of the All India Gem and Jewellery Domestic Council.

“There aren’t that many hallmarking centres to cover all the districts in India. Meeting the April 1 deadline on all gold carried in stores will be next to impossible.”