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IFSCA notifies bullion exchange regulations

The International Financial Services Centres Authority (IFSCA) has notified the bullion exchange regulations.

Sentinel Digital Desk

NEW DELHI: The International Financial Services Centres Authority (IFSCA) has notified the bullion exchange regulations.

With this, decks have cleared for setting of an global Bullion Exchange at the International Financial Services Centre in GIFT City, Gandhinagar, Gujarat.

In the Union Budget 2020, Finance Minister Nirmala Sitharaman had made an announcement for operationalising an international billion exchange. Subsequently, the Government had 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 27,2020.

The said regulations have been now 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. (IANS)