NEW DELHI 14 December 2020: The stage has been set for India’s International Bullion Exchange to go into operation with the notification of its regulations in the official Gazette of India.
The Ministry of Finance here said in an announcement yesterday that the International Financial Services Centre (IFSCA) in Gandhinagar, capital of Gujarat state, “has been entrusted with the responsibility of operationalization of this exchange.”
The IFSCA was created in April this year and the plan to set up India’s International Bullion Exchange was revealed in her annual budget speech 2020 by the Minister of Finance and Corporate Affairs, Nirmala Sitharaman, said Wam.
The regulations cover the entire gamut of the Bullion Trading and Exchange, including its Clearing Corporation, Depository and Vaults. “The Government of India has notified the bullion spot delivery contract and bullion depository receipt as financial products and related services as Financial Services under the IFSCA Act.”
India is a huge consumer of gold and its market for the precious yellow metal is historically linked to the Dubai gold souk. India’s major jewelers have had a presence in the souk for many decades and the emirate is a major source for gold re-exports to the Indian market.