These measures are needed to enable the RBI and banks to enter into derivative contracts in gold. Further, it is not clear whether gold-denominated certificates and other gold-related products would be deemed to be a security in terms of Securities Contracts (Regulation) Act. There are also wide-ranging issues related to taxation.
In the European Community, transactions in gold are subject to VAT at rates which vary from country to country. In some countries, gold is subject to sales tax as well.