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International Financial Services Centres Authority (IFSCA) has issued Circular No. IFSCA/DMC-MRD/Bullion/Technology/6/2024/01 on July 8, 2024, addressing Bullion Market Infrastructure Institutions (MIIs), Bullion Trading Members, and Bullion Clearing Members operating within IFSCs.

The circular extends the guidelines previously laid out for Direct Market Access (DMA) and Sponsored Access (SA) facilities in stock exchanges to also cover the Bullion Exchange participants in IFSCs. This extension requires Bullion Exchanges to amend their bye-laws, rules, and regulations accordingly to implement DMA and SA provisions. Additionally, they are mandated to inform and disseminate the circular’s provisions to Bullion Trading Members and Bullion Clearing Members through their official channels and website.

This regulatory action by IFSCA is enacted under the authority granted by Section 12 of the IFSCA Act, 2019, read with Regulation 58 of the IFSCA (Bullion Exchange) Regulations, 2020. The circular underscores IFSCA’s commitment to regulating financial services within IFSCs comprehensively, ensuring that the same standards of market access and operational oversight are applied uniformly across different financial instruments, including bullion trading.

IFSCA

International Financial Services Centres Authority

Circular No. IFSCA/DMC-MRD/Bullion/Technology/6/2024/01 Dated: July 08, 2024

To
Bullion MIIs in the International Financial Services Centre (IFSC)
Bullion Trading Members in the IFSC
Bullion Clearing Members in the IFSC

Madam/Sir

Direct Market Access (DMA) facility and Sponsored Access (SA) facility for Bullion Exchange participants

The IFSCA, vide Circular dated June 21, 2023, has prescribed guidelines and provisions for Direct Market Access (DMA) facility and Sponsored Access (SA) facility offered by broker dealers to their clients for trading on the stock exchanges in the IFSC.

2. In continuation of the same, it is hereby informed that the aforementioned IFSCA Circular shall also apply, mutatis mutandis, to Bullion Exchange, Bullion Trading Members and Bullion Clearing Members.

3. The Bullion Exchange is advised to:

a) make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above, and

b) bring the provisions of this circular to the notice of the Bullion Trading Members and Bullion Clearing Members and disseminate the same on its website.

4. This Circular is issued in exercise of the powers conferred under Section 12 of the IFSCA Act, 2019 r/w Regulation 58 of the IFSCA (Bullion Exchange) Regulations, 2020.

5. A copy of this Circular is available on IFSCA website at ifsca.gov.in under the category “Legal → Circulars”.

Yours faithfully

(Ramaneesh Goyal)
Deputy General Manager
Market Regulation Division
Department of Metals and Commodities
email: ramaneesh.goyal@ifsca.gov.in
Tel: +91 79 6180 9886

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