International Financial Services Centre (IFSC) has issued Guidelines for execution of block deals on the Bullion Exchange. These guidelines were issued on 3rd March, 2023.
The IFSC has deemed it necessary to enable a mechanism for execution of large trades in gold in a single transaction without putting either the buyer or the seller in a disadvantageous position. In order to facilitate execution of such large trades, the Bullion Exchange is being permitted to provide a separate trading window for this purpose.
A trade, with a minimum quantity of 100 kgs of gold, executed through a single transaction on this separate trading window of the Bullion Exchange will constitute a “block deal”. Only non-individual participants shall be permitted to execute block deals.
All appropriate trading and settlement practices and surveillance and risk management measures, etc. as presently applicable to the normal trading segment will also be applicable and implemented in respect of the proposed block deal window also.