International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020
On 4th December 2020, the International Financial Services Centres Authority (IFSCA) issued a Notification No. IFSCA/2020-21/GN/REG005, titled “International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020”
The IFSCA Bullion Exchange Regulations 2020 are designed to specify the operating framework of Bullion Exchanges in an IFSC. The regulations provide provisions:
- The procedures of recognition of bullion exchange and bullion clearing corporations. These procedures include the application procedure, requirements for grant, grant of application, and withdrawal of recognition.
- The functions of a Bullion Exchange in an IFSC, the general obligations of bullion clearing corporations, and the ownership of bullion exchanges and bullion clearing corporations.
- The governance and general obligations of bullion exchanges and bullion clearing corporations. Provisions regarding membership of the bullion exchange or bullion clearing corporations are also provided.
- Regarding to bullion depositories, including provisions regarding ownership of bullion depositories, rights and obligations of bullion depositories, and their participants and beneficial owners.
- The registration process for a vault manager, his liabilities, and records and accounts of the vault management business kept by him.
Other aspects the regulations cover are bullion depository receipts, the requirement of ‘fit and proper’ persons, and registration of intermediaries and persons associated with the bullion market.
