International Financial Services Centres Authority Act Was Established

Highlights:

  • In the 2020 Union Budget, the Union Minister of Finance announced the establishment of an International Bullion Exchange at the International Financial Service Centre in GIFT, Gandhinagar, Gujarat.
  • The International Financial Services Centre Authority (IFSCA) stated that it had notified the bullion exchange regulations, paving the way for the establishment of an entire ecosystem for bullion transactions, including bullion exchange, depository, and clearinghouse.
  • These regulations especially cover Bullion Exchanges, Clearing Corporations, Depository and Vaults.
  • The Indian government has notified the bullion spot delivery contracts and bullion depository receipts (with bullion as underlying) as financial products and related services as financial services under the International Financial Services Centre.
  • IFSCA, headquartered in Gujarat, has been authorized to supervise all financial services of IFSC.
  • This move may lead to the better discovery of gold prices, create more jobs and strengthen India's position in the global bullion market.
  • GIFT City will establish an international bullion exchange as another option for global market participants to trade.