FAQs on the Operating Guidelines of the Bullion Exchange, Clearing Corporation, Depositories & Vault Manager

The International Financial Services Centres Authority through circular dated 20/09/2021 has issued FAQs on the Operating Guidelines of the Bullion Exchange, Clearing Corporation, Depositories & Vault Manager. The FAQs clarify that a customer transacting in BDR(Bullion Depository Receipt)can appoint a IFSCA recognized custodian. The custodian will act as a safe keeper of the customer’s BDR and can inter alia perform the following functions:

1. Maintain the securities account on behalf of the customer.
2. Clear and settle the transactions of the customer.
3. Keep the customer informed of the actions taken or to be taken by the issuer of securities.
4. Having a bearing on the benefits or rights accruing to the customer.