The IFSCA vide its notification dated 4th December 2020 has published the International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020 which covers Bullion Exchange, Clearing Corporation, Depository and Vaults.
Any corporate, which is desirous of being recognised as a bullion exchange or bullion clearing corporation may submit an application in the form and manner as may be specified by the Authority. The applicant seeking recognition as a bullion exchange or bullion clearing corporation,shall be a company limited by shares, have demutualized and shall have a net worth of 30 million USD, to be maintained on a continuing basis and have its directors and its shareholders who hold or intend to hold shares, who are fit and proper persons as specified in these regulations.
Every bullion exchange shall, with effect from the date of the commencement of operations as a bullion exchange, use the services of a recognised bullion clearing corporation for clearing and settlement of its trades.
No person shall, directly or indirectly, acquire or hold any equity shares or voting rights of a bullion exchange or bullion clearing corporation unless it is a fit and proper person: Provided that the onus shall be on the bullion exchange or bullion clearing corporation to ensure that all its shareholders are fit and proper persons: Provided further that such a requirement to ensure that all its shareholders are fit and proper persons shall not be applicable to a listed bullion exchange for shareholding of a person who, directly or indirectly, acquires or holds less than five percent equity shares or voting rights of such listed bullion exchange.
The bullion exchange and bullion clearing corporation shall maintain and preserve all the books, registers, other documents and records relating to the issue or transfer of its securities for a period of not less than eight years.
