The latest FATF report reveals that only 9,500 of the 175,000 dealers in precious metals and stones (DPMS) are registered with the Gems & Jewellery Export Promotion Council.
During the trade so far, Kalyan Jewellers shares rallied as much as 12.5% to ₹128.55 level, while the market capitalisation jumped to ₹13,164 crore.
Warburg Pincus, which holds 26.36% stake in Kalyan Jewellers through its subsidiary, Highdell, looks to sell 2.5% equity stake in the company.
Many believe cash deals up to ₹2 lakh without KYC leaves a loophole for jewellers and bullion dealers to exploit.
