IFSCA board approved two regulations on bullion exchange

The International Financial Services Centres Authority (IFSCA) sanctioned the regulations on bullion exchange during a meeting, which paves the way for fixing a whole ecosystem for bullion trading, namely, bullion exchange, depository, clearing house and vaults. This is the first time in India, where a single regulator i.e. IFSCA has the responsibility to operationalise the bullion exchange. IFSCA will regulate both the bullion spot and derivative contracts that would be traded on the exchange.

International Financial Services Centres Authority (IFSCA)

Government of India has established IFSCA which is a statutory body under IFSCA Act, 2019 to regulate all the financial services in International Financial Services Centres (IFSCs) with headquarter in Gandhinagar, Gujarat. The functions of IFSCA are as follows:

• It manages and regulates the financial products such as securities, deposits or contracts of insurance, financial institutions and financial services which has been approved by any regulator such as SEBI, RBI etc. in an International Financial Services Centres (IFSCs).
• It manages the financial services, financial institutions and financial products in an IFSC as the central government may notify.
• To suggest such other financial services, financial institutions and financial products to central government, which may be permitted in an IFSC.

Members of IFSCA

• It consists of nine members that will be appointed by central government.
• The members include a chairperson, one member each to be proposed by Reserve Bank of India (RBI), Security Exchange Board of India (SEBI), Insurance Regulatory Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority (PFRDA); and two members from the Ministry of Finance (MoF).
• In addition to these, two other members on the recommendation of a Selection Committee will be appointed.
• All the members will have the tenure of three years.