New Delhi: In the Union Budget 2020, Union Minister of Finance Corporate Affairs, Nirmala Sitharaman, had made an announcement for setting up an International Bullion Exchange at the International Financial Services Centre in GIFT City, Gandhinagar, Gujarat. Subsequently, the Government of India 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 International Financial Services Centres Authority (IFSCA) Act, 2019, as stated in a statement by the Ministry of Finance on Sunday, 13th December.
IFSCA has been entrusted with the responsibility of operationalisation of this Exchange. In this regard, the International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020, were approved by the Authority in its meeting held on 27th October. The said regulations have been notified and published in the Gazette of India on 11th December.
The regulations inter alia cover the Bullion Exchange, Clearing Corporation, Depository, and Vaults. The regulations are divided into 16 chapters. The 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.
The complete text of the notified regulations is available on the IFSCA website.
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