IFSCA notifies bullion exchange regulations at international bullion exchange, Gandhinagar

In the last Union Budget, the Union Minister of Finance Corporate Affairs Nirmala Sitharaman had announced operationalising an international bullion exchange at the International Financial Services Centres  Authority (IFSCA) in GIFT City, Gandhinagar in Gujarat.

Accordingly, the IFSCA has notified bullion exchange regulations, it is understood.

Subsequently, the Government of India notified the bullion spot delivery contract and bullion depository receipt (with bullion as underlying) as Financial Products and related services as Financial Services under the IFSCA Act, 2019.

IFSCA has been entrusted with the responsibility of operationalisation of this Exchange. In this regard, International Financial Services Centres Authority (Bullion Exchange) Regulations 2020 were approved by the Authority in its meeting held on October 27, this year. The said regulations have been notified and published in the Gazette of India on December 11, 2020.

The regulations inter alia cover the Bullion Exchange, Clearing Corporation, Depository and Vaults. The regulations are divided into the 16 chapters. First half of the regulation deals with the Exchange and Clearing Corporations while the second half pertains to the Vaults and Depositories and related provisions.