IN GIFT IFSC

OVERVIEW

• The IFSCA (Bullion Market) Regulations, 2025 were updated replacing the IFSCA (Bullion Exchange) Regulations, 2020.
• The updated regulations strengthen the bullion market in GIFT IFSC by including bullion exchanges and other market participants.

Key Features of the Regulations

• The Bullion Market Regulations have undergone a name change from “Bullion Exchange” to “Bullion Market” to encompass a wider range of market participants.
• The regulations require a minimum net worth of USD 10 million for Bullion Exchanges and Clearing Corporations, with potential for higher requirements based on business scale.
• These updates aim to enhance the robustness and inclusivity of the bullion market.

Definitions & Management

• The Bullion Market Regulations expand the definition of Key Management Personnel (KMP) to include individuals who influence decisions and manage core functions.
• The “consumer” definition now includes constituents of bullion trading members and special category clients, while “Non-Independent Directors” replaces “Shareholder Directors,” offering more flexibility in appointments.

Provisions for Market Stability

• The Bullion Market Regulations introduce a Code of Conduct for Bullion Market Infrastructure Institutions (MIIs), building on the KMP code from 2021.
• Additionally, an orderly winding down framework is mandated, requiring Bullion Clearing Corporations to have a plan in place for the smooth and efficient cessation of operations when necessary.

conclusion

• The Bullion Market Regulations aim to enhance price transparency for bullion trading in GIFT IFSC, fostering more efficient price discovery.
• In addition, the regulations introduce new safeguards to protect customer interests and streamline processes, ultimately making it easier to do business in the bullion market.
• The new framework aims to improve market efficiency, provide regulatory clarity, and offer a comprehensive approach to bullion market operations.