Laws and sections by number or title, due dates, pages, and updates.
Indian banks authorized by the Reserve Bank of India to import gold and silver can directly access the trading system of the India International Bullion Exchange IFSC Limited without a Bullion Trading Member. These banks act as Special Category Clients and place buy orders on the exchange on behalf of their clients using their own Unique Client Code. The banks must use an IFSC Banking Unit registered as a Bullion Clearing Member to clear purchase transactions. The banks place only buy orders and do not enter sell orders. The banks ensure that purchased Bullion Depository Receipts are extinguished and the Bill of Entry is filed within eleven calendar days from the remittance date.
What you must do
Key dates
Who is affected
Thresholds
Ask about this circular
[Image omitted. See the official document.]
329/IFSCA/Bullion MIIs/2024-25/01
April 19, 2024
To
Banks authorized by the RBI to import gold/silver Bullion MIIs in the International Financial Services Centre (IFSC) Bullion Trading/Clearing Members in the IFSC Vault Managers in the IFSC All market participants on the Bullion Exchange in the IFSC
Dear Sir / Madam
Import of gold and silver by Indian Banks through India International Bullion Exchange IFSC Limited (IIBX)
The Reserve Bank of India (RBI), vide its Circular dated February 09, 2024, allowed Indian banks authorized to import gold/silver to act as Special Category Clients (as defined in the IFSCA Circular dated December 11, 2023) of the IIBX.
Accordingly, it has been decided to permit the Indian Banks, authorized by the RBI to import gold/silver, to directly access the trading system of the IIBX, without the need for a Bullion Trading Member, for undertaking such import on behalf of their clients. However, such banks (referred to as ‘SCC Banks’ hereafter in this Circular) shall utilize the services of an IFSC Banking Unit (IBU) registered as a Bullion Clearing Member for clearing of their purchase transactions.
SCC Banks shall only place a buy order on the IIBX for the purpose of import of gold/silver on behalf of their clients. SCC Banks shall not enter a sell order on the IIBX. IIBX shall put in place necessary systems and processes to ensure the same.
While SCC Bank can buy on the IIBX on behalf of its clients, orders on the IIBX shall be placed in its own name (i.e. in the name of the SCC Bank). Thus, the Unique Client Code (UCC) used for placing such orders shall be that of the SCC Bank.
SCC Banks shall ensure that the Bullion Depository Receipts (BDRs) they purchase on the IIBX are extinguished and that the Bill of Entry is filed by them within eleven calendar days from the date of remittance, in terms of RBI Circular RBI/2022-23/57/A.P(DIR Series) Circular No. 04 dated May 25, 2022.
SCC Banks shall not be considered as Bullion Trading Members or intermediaries of the IIBX.
SCC Banks shall comply with all the other applicable norms specified in IFSCA (Bullion Exchange) Regulations, 2020, Operating Guidelines specified by IFSCA on August 25, 2021 and other regulatory requirements as may be specified, and amended, by IFSCA and IIBX from time to time. They shall also comply with the Code of Conduct that may be issued by IIBX.
SCC Banks shall also ensure adherence to the terms and conditions / instructions, as applicable to them, stipulated by the RBI, Directorate General of Foreign Trade (DGFT) and any other regulatory / government body.
This Circular is 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 and in pursuance of RBI Circular mentioned in Para 1 of this Circular.
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
(Ramaneesh Goyal) Deputy General Manager Market Regulation Division Department of Metals and Commodities email: ramaneesh.goyal@ifsca.gov.in Tel: +91 79 6180 9886
