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The International Financial Services Centres Authority permits existing registered trading members and clearing members of stock exchanges and clearing corporations in GIFT-IFSC to operate as Bullion Trading Members and Bullion Clearing Members. These members must meet the required net worth criteria. New entities must follow the membership criteria and registration process determined by the Bullion Exchange or Bullion Clearing Corporation. All entities must be a body corporate incorporated in India or in a foreign jurisdiction. Entities operating under a branch structure must ring fence operational, technology, and financial aspects of the IFSC branch from overseas operations.
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[Image omitted. See the official document.]
CIRCULAR
F. No. 329/IFSCA/Bullion MIIs/2021
September 17, 2021
To, Bullion Exchange in the International Financial Services Centre (IFSC) Bullion Clearing Corporation in the International Financial Services Centre (IFSC) Bullion intermediaries in the International Financial Services Centre (IFSC)
Dear Sir/Madam,
Sub: Bullion Trading Member and Clearing Members in GIFT-IFSC
On-Boarding of existing registered members in GIFT-IFSC
New entities desirous of operating as Bullion Trading/Clearing Members
Net-Worth criteria
| S. No. | Category | Net Worth | |
|---|---|---|---|
| Entities incorporated in India (including IFSC) | Foreign Entities | ||
| 1 | Trading member | As specified by the Bullion Exchange | As specified by the Bullion Exchange, subject to a minimum of USD 135,000 |
| 2 | Clearing Member | As specified by the Bullion Clearing Corporation | As specified by the Bullion Clearing Corporation, subject to minimum of USD 1,350,000 |
| 3 | Trading and Clearing member | As specified by the Bullion Clearing Corporation | As specified by the Bullion Clearing Corporation, subject to minimum of USD 1,350,000 |
| 4 | Self-Clearing Member | As specified by the Bullion Clearing Corporation | As specified by the Bullion Clearing Corporation, subject to minimum of USD 675,000 |
Base Minimum Capital
| S. No. | Category | Base Minimum Capital | |
|---|---|---|---|
| Entities incorporated in India (including IFSC) | Foreign Entities | ||
| 1 | Trading member | As specified by the Bullion Exchange | As specified by the Bullion Exchange, subject to a minimum of USD 75,000 |
| 2 | Clearing Member | As specified by the Bullion Clearing Corporation | As specified by the Bullion Clearing Corporation, subject to minimum of USD 75,000 |
| 3 | Trading and Clearing member | As specified by the Bullion Clearing Corporation | As specified by the Bullion Clearing Corporation, subject to minimum of USD 75,000 |
| 4 | Self-Clearing Member | As specified by recognized Bullion Clearing Corporation | As specified by the Bullion Clearing Corporation, subject to minimum of USD 75,000 |
Additional Requirements
Any entity desirous of operating as Bullion Trading/Clearing Member shall be a body corporate, incorporated in India or in a foreign jurisdiction.
Any entity desirous of functioning as a trading member / clearing member under the branch structure in GIFT-IFSC shall adequately ring fence the operational, technology and financial aspects of its branch in IFSC from its overseas operations.
This circular is issued in exercise of powers conferred by section 12 of the International Financial Services Centres Authority Act, 2019 to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres.
A copy of this circular is available on the website of the International Financial Services Centres Authority at www.ifsca.gov.in.
Yours faithfully,
Praveen Kamat Deputy General Manager Division of Technology and Supervision Department of Precious Metals email: praveen.kamat@ifsca.gov.in Tel: +91-079-61809820
