The Ministry of Finance vide its notification dated 24th December 2021, has notified two financial products (instruments) namely bullion spot delivery contract and bullion depository receipt with underlying bullion as “securities” under the Securities Contracts (Regulation) Act, 1956.
“Bullion spot delivery contract” shall mean a contract which provides for actual delivery of bullion and the payment of a price therefor either on the same day as the date of the contract or on the next day, the actual period for the delivery of the bullion or the remittance money therefore being excluded from the computation of the period aforesaid if the parties to the contract do not reside in the same town or locality and transfer of the bullion by the depositary from the account of a beneficial owner to the account of another beneficial owner when such bullion is dealt with by a depositary licensed by the Authority for this purpose.
The “bullion depository receipt with underlying bullion” shall mean such bullion depository receipt listed on the International Bullion Exchange (IBE) operating inside the International Financial Services Centre and is licensed by the Authority under the said Act.
