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CIRCULAR
329/IFSCA/DPM/TS/2022-23/1
June 17, 2022
To,
All the Bullion Market Infrastructure Institutions (MIIs) in IFSC
All the Market Intermediaries in IFSC
All the Banking Units in IFSC
Dear Sir/Madam,
Sub: Clarification on investment in Bullion Depository Receipts (BDR) on India
International Bullion Exchange (IFSC) Limited (IIBX) through the Liberalised Remittance
Scheme (LRS) route
1. The Government of India vide notification dated August 31, 2020, had notified the Bullion
Spot Delivery Contract and Bullion Depository Receipt (BDR) with underlying Bullion as
Financial Product and related services as Financial Services.
Further, vide Gazette Notification dated December 24th, 2021, Bullion Spot Delivery
Contract and Bullion Depository Receipt (BDR) with underlying bullion have been included
in the definition of ‘securities’ under the Securities Contract Regulations Act 1956.
2. Remittances to International Financial Services Centres (IFSCs) in India under the
Liberalised Remittance Scheme (LRS) as permitted by the Reserve Bank of India notification
dated February 16, 2021, allows resident individuals to make remittance in IFSCs in India
only for making investments in IFSCs in securities, other than those issued by
entities/companies resident (outside IFSC) in India.
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3. In this regard, it is hereby being clarified that, resident individuals, as referred to in the RBI
circular on LRS dated February 16, 2021, are not permitted to transact/invest in BDR on
IIBX through the LRS route.
4. This is without prejudice to the participation of Qualified Jewellers notified by the IFSCA, in
terms of DGFT notification no. 49/2015-2020 dated January 05, 2022 for purchase of BDRs
for the sole purpose of import of gold through IIBX.
This Circular has been issued in exercise of the power conferred under section 12 of the
International Financial Services Centres Authority Act, 2019 r/w Regulation 58 of the
International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020
A copy of this Circular is available on the website of International Financial Services Centres
Authority at www.ifsca.gov.in at “Legal →Circulars”.
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
