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IFSCA board approves bullion exchange regulations

27 October 2020

 

The board of the International Financial Services Centres Authority (IFSCA) on Tuesday approved draft bullion exchange regulations, paving the way for setting up the entire ecosystem for bullion trading, including bullion exchange, depository, clearing house and vaults.IFSCA has been tasked with the responsibility of operationalisation of bullion exchange at the International Financial Services Centre (IFSC) in GIFT City near Ahmedabad in Gujarat.

 

"For the first time in India a single regulator will be regulating both the bullion spot and derivative contracts that would be traded on the exchange," IFSCA said in a statement after the board meeting.The board also approved International Financial Services Centres Authority (Global In-House Centres) Regulations, 2020 to provide services relating to financial products and financial services.A Global In-House Centre (GIC) may conduct its business in any mode permitted by the authority, including branch mode.In recent years, GICs in India have been contributing to development of highly skilled talent pool in the country, it said. India is emerging as the world''s leading centre of digitisation, with one of largest pool of digital talents.

 

"These GIC regulations issued by IFSCA has the potential to put GIFT-IFSC in the leagues of leading FinTech cities, generating significant employment opportunities," the statement said.It further said the International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020 envisage to provide an integrated platform for all the market intermediaries, including trading members/clearing members, bullion depositories and vault managers so as to facilitate transparency and traceability in the bullion market and standardisation of bullion contracts.These regulations will be notified by the Government of India in due course, it added.Gujarat-headquartered IFSCA has been authorised to regulate all financial services at IFSCs.The IFSCA was established on April 27 this year with its head office in Gandhinagar.In December 2019, Parliament passed a bill to set up a unified authority for regulating all financial activities at IFSCs in the country.

 

Source: https://www.outlookindia.com/newsscroll/ifsca-boa