Gold Hallmarking in Nepal: What FENEGOSIDA Certification Means for Buyers

Walk into almost any jewellery shop in Nepal and you'll hear two terms thrown around constantly: "hallmark" and "tejabi." For a first-time buyer, it isn't always clear what these words actually guarantee — or whether you're getting the purity you're paying for. This guide explains what gold hallmarking really certifies in Nepal, the role FENEGOSIDA plays in the bullion market, and exactly how to protect yourself from under-carated or fake gold.

What Hallmarking Actually Certifies

Hallmarking is simply a certification of a gold item's actual purity — how much real gold it contains versus other alloyed metals. In Nepal's market, gold is commonly sold under three broad categories. "Fine gold" refers to 99.9–99.99 percent purity, the grade typically imported by banks and used for investment bars and coins. "Hallmark" gold, often called chhapawal in Nepali, refers to certified 24-karat gold, historically pegged around 99.5 percent purity, and is the standard used for investment-grade jewellery and coins. "Tejabi" gold is the 22-karat gold most commonly used in traditional wedding jewellery, bangles, and ornaments, with a purity of roughly 91.6 percent — the remaining share is alloy metals like copper or silver added for strength and durability, since pure 24K gold is too soft for intricate jewellery work.

The karat mark itself — often stamped as 999, 916, or 750 — is a numeric shorthand for purity: 999 means 99.9 percent pure, 916 means 91.6 percent pure (22K), and 750 means 75 percent pure (18K). A genuine hallmark stamp on the piece itself, not just written on the receipt, is what actually certifies this purity to a buyer.

The Role of FENEGOSIDA in Regulating the Bullion Market

The Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA) is the umbrella trade body that publishes Nepal's daily reference prices for gold and silver, which nearly all registered jewellers across the country follow. Beyond pricing, FENEGOSIDA has also played a role in encouraging the shift toward higher-purity, better-certified gold in the domestic market — including pushing dealers to clearly distinguish between fine gold, hallmark gold, and tejabi gold rather than lumping everything together as generic "24 karat" or "22 karat."

It's worth understanding the limits of this system too. Unlike India, which enforces mandatory hallmarking through the Bureau of Indian Standards (BIS) with independent third-party assaying centres, Nepal's certification landscape has historically relied more heavily on FENEGOSIDA's guidelines, the Nepal Bureau of Standards and Metrology's purity framework, and a significant degree of voluntary compliance by individual jewellers. This means the trustworthiness of a hallmark stamp in Nepal still depends heavily on the reputation and registration status of the specific dealer you're buying from, rather than a single, universally enforced independent certification body.

How to Spot Fake or Under-Carated Gold

Under-karating — selling 18K or 20K gold while claiming it's 22K — remains a documented issue in parts of Nepal's retail jewellery market, largely because not every small trader has the equipment or trained staff to verify purity precisely. A few practical checks can meaningfully reduce your risk. Always look for a visible karat stamp on the jewellery piece itself, not just a number written on the bill, since a bill alone offers no real proof once you've left the shop. Buy only from FENEGOSIDA-registered dealers, and don't hesitate to ask for their registration number if it isn't displayed. Insist the piece is weighed in front of you on a certified scale before the price is calculated, and request an itemised bill that separately states the purity, the gross weight, the making charges (jyala), and any wastage percentage being applied. For tejabi gold specifically, a reputable jeweller can perform a quick acid or touchstone test on the spot to confirm purity before you commit to the purchase.

Legal Recourse If You've Been Cheated

If you discover after purchase that gold was sold to you at a purity lower than what was claimed, your first step should be to return to the dealer with your original, itemised bill and request a re-test or refund — a proper bill stating purity is your strongest piece of evidence. If the dealer refuses to cooperate, a complaint can be filed with Nepal's Department of Commerce, Supplies and Consumer Protection, which handles consumer-rights disputes including misrepresented product quality. You can also raise the issue with FENEGOSIDA directly if the dealer is a registered member, since federation membership carries an expectation of compliance with standard purity and pricing practices. Keeping your original receipt, and ideally getting the piece independently tested at a second jeweller or an assaying facility, strengthens your case considerably.

Frequently Asked Questions

Is hallmark gold always 24K?

In Nepal's market, "hallmark" (chhapawal) typically refers to certified 24-karat gold. However, the broader concept of hallmarking — an official purity certification — can technically apply to other karats too, such as 22K or 18K jewellery, as long as the piece carries an accurate purity stamp. When a Nepali dealer says "hallmark" without further clarification, they almost always mean the certified 24K category.

What's the difference between Hallmark and Tejabi gold?

Hallmark gold is 24-karat, roughly 99.5 percent pure, and is generally bought as investment-grade bullion, bars, or coins. Tejabi gold is 22-karat, around 91.6 percent pure, alloyed with other metals for extra strength, and is the standard choice for everyday and wedding jewellery because pure 24K gold is too soft to hold intricate designs well.

For more on buying precious metals in Nepal, see our Sarafa Bazar buying guide and today's gold price update.