Introduction: In a significant move to streamline regulations and enhance the financial landscape, the Union Budget for FY 2023-24 emphasized the need to review existing regulations within the financial sector. The International Financial Services Centres Authority (IFSCA) responded promptly by inviting suggestions for the review of the IFSCA (Bullion Exchange) Regulations, 2020. This open call aims to simplify compliance, reduce costs, and gather insights from the public and regulated entities.
Detailed Analysis: The IFSCA, recognizing the importance of the bullion industry within the International Financial Services Centre (IFSC), has established the ‘Precious Metals Advisory Committee.’ This committee is tasked with recommending a comprehensive vision for the development of the precious metals’ ecosystem at IFSC. Moreover, it aims to understand international regulatory practices and formulate a pragmatic approach for IFSCA.
To actively engage stakeholders, IFSCA has set up a structured format for submitting suggestions. Interested parties can contribute their feedback on specific regulations or sub-regulations, providing detailed rationale and supporting information. This inclusive approach encourages transparency and collaboration, ensuring that the final regulations align with industry needs and international best practices.
Conclusion: The call for suggestions on the review of IFSCA (Bullion Exchange) Regulations, 2020, marks a pivotal moment for the bullion industry within IFSC. Stakeholders, both public and regulated entities, are encouraged to actively participate in shaping the future policies governing this sector. By sharing their expertise and insights, they contribute to a regulatory framework that fosters growth, innovation, and stability. IFSCA’s commitment to collaboration underscores its dedication to creating a conducive environment for the bullion industry to thrive within the International Financial Services Centre. Act now and be a part of this transformative process, shaping the future of the precious metals industry in IFSC.
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International Financial Services Centres Authority
Seeking suggestions for review of IFSCA (Bullion Exchange) Regulations, 2020
In the Union Budget for FY 2023-24, the Hon’ble Union Finance Minister announced that:
“To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For this, they will consider suggestions from public and regulated entities….”
It may be noted that the IFSCA (Bullion Exchange) Regulations, 2020 were notified on December 04, 2020. Further, the amendments to the IFSCA (Bullion Exchange) Regulations were notified on July 05, 2021, which, among other things, introduced Regulation 59 to make applicable the IFSCA (Market Infrastructure Institutions) Regulations, 2021, in case of any conflict or inconsistency on the same subject matter, with the IFSCA (Bullion Exchange) Regulations, 2020.
With a view to seek guidance in navigating the policy challenges related to the bullion industry in IFSC, IFSCA has also constituted a ‘Precious Metals Advisory Committee.’ The Committee, amongst other things, is expected to recommend short, medium, and long-term vision/roadmap for IFSCA for development of the precious metals’ ecosystem at IFSC and provide insights on prevailing regulatory practices in the precious metal ecosystem across key international financial jurisdictions and to recommend a desirable approach for IFSCA.
In view of the above, IFSCA hereby invites suggestions for review of IFSCA (Bullion Exchange) Regulations, 2020 from public and regulated entities.
Suggestions may be sent by email to Mr. Ramaneesh Goyal, Deputy General Manager at amaneesh.goyal@ifsca.gov.in with a copy to Mr. Kamlesh Sharma, Chief General Manager, at kamlesh.sharma27@ifsca.gov.in latest by November 30, 2023.
The suggestions should be provided in an MS Word or MS Excel File in the following format:
| Name and Details of the Person/Entity (Organization name (if applicable), Contact no. and Email Address) |
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| S No. | Regulation No./ Sub Regulation No. | Text of Regulation/ Sub-Regulation | Suggestion | Detailed Rationale | Other supporting information* |
* such as relevant IOSCO Principles, practices prevalent in other centres, practices in other business areas, etc.
October 30, 2023
Gandhinagar
