Introduction: The International Financial Services Centres Authority (IFSCA) has issued Circular F. No. 329/IFSCA/Bullion MIIs/2023-24/04 on February 22, 2024, extending the guidelines for Bullion Intermediaries in the GIFT-IFSC. This circular revisits the extension of the specified period outlined in previous communications.
Detailed Analysis: The circular refers to the prior communication, Circular F.No.329/IFSCA/Bullion MIIs/2021 dated September 17, 2021, and subsequent extensions provided in Circular F. No. 329/IFSCA/Bullion MIIs/2022-23 dated January 27, 2023, and Circular F. No. 329/IFSCA/Bullion MIIs/2023-24/01 dated August 07, 2023. These extensions pertained to the initial 6-month period specified in paragraphs 3 and 4 of the original circular.
The latest circular extends this period by an additional 6 months, effective until July 28, 2024, or until IFSCA issues revised guidelines/handbook/circular specifying the requirements of minimum Net worth and Base Minimum Capital for Bullion intermediaries, whichever comes earlier.
The extension, issued under the powers conferred by Section 12 of the International Financial Services Centres Authority Act, 2019, emphasizes IFSCA’s commitment to developing and regulating financial products, services, and institutions in the International Financial Services Centres.
Conclusion: In conclusion, IFSCA’s latest circular provides crucial updates for Bullion Intermediaries in GIFT-IFSC, extending the timeline for compliance with specified guidelines. The extension until July 28, 2024, or until the issuance of revised guidelines, demonstrates IFSCA’s dedication to ensuring a smooth transition for Bullion Trading Members and Clearing Members. Stakeholders are encouraged to stay informed and compliant with the evolving regulatory landscape to navigate the dynamic environment of financial services in the International Financial Services Centres.
IFSCA
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
Circular No. F. No. 329/IFSCA/Bullion MIIs/2023-24/04 Dated: February 22, 2024
To
Bullion Exchange in the International Financial Services Centre (IFSC)
Bullion Clearing Corporation in the IFSC
Bullion intermediaries in the IFSC
Dear Sir/Madam
Bullion Trading Members and Clearing Members in GIFT- IFSC
This has reference to IFSCA’s circular F.No.329/IFSCA/Bullion MIIs/2021 dated September 17, 2021 (circular) regarding the captioned subject. IFSCA has extended the initial 6 months period specified in paragraphs 3 and 4 of the aforementioned circular by an additional period of 6 months i.e., till July 28, 2023 vide circular F. No. 329/IFSCA/Bullion MIIs/2022-23 dated January 27, 2023 and till January 28, 2024 vide circular F. No. 329/IFSCA/Bullion MIIs/2023-24/01 dated August 07, 2023.
It has been decided to extend the period specified in paragraphs 3 and 4 of the circular by a further period of 6 months i.e., till July 28, 2024 or till the time IFSCA issues revised guidelines/handbook/circular specifying the requirements of minimum Net worth and Base Minimum Capital for Bullion intermediaries, whichever is earlier.
This circular is issued in exercise of powers conferred by Section 12 of the International Financial Services Centres Authority Act, 2019 to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres.
A copy of this circular is available on the website of the International Financial Services Centres Authority at www.ifsca.gov.in.
Yours faithfully
(Kamlesh Sharma)
Chief General Manager
Department of Metals and Commodities
email: kamlesh.sharma27@ifsca.gov.in
Tel: +91 79 6180 9810
