IFSCA approves two new regulations

On October 27, 2020, International Financial Services Centre Authorities approved to new regulations during the board meeting held.

Highlights

During the meeting the following new regulations were approved

• International Financial Services Centre authorities Bullion exchange regulations, 2020
• International financial services Centre authorities Global inhouse centres regulation, 2020

International Financial Services Centres Authorities (Bullion Exchange) regulations, 2020

Based on the recommendation of the International Financial Services Centre authorities, the Government of India notified bullion depository receipt and bullion spot delivery contract as financial products. They were notified under the International Financial Services centre at authority act, 2019. The IFSCA was tasked to operate this bullion exchange. For the first time a single authority regulated both the derivative contract and the bullion spot.

The regulations of the bullion spot was approved by the authority in the meeting held

the salient aspects of the bullion exchange regulations were identified as follows

• the gender obligations and functions of bullion exchange
• the governance and ownership structure of the bullion exchange
• the obligations and rights of Bullion depositary is beneficial owners and participants
• the grant of registration
• role of Bullion repositories

The bullion regulation will integrate All the above platforms to facilitate transparency and traceability in the bullion market.

International Financial Services Centre Authority (Global in-house Centre) circulation 2020

Based on the Recommendation of IFSCA, the Government of India notified Global inhouse centres as financial services. These centres will provide services related to financial products .

The salient features of the regulation of global inhouse centres are as follows

• a Global inhouse centre can conduct its business in any mode. The modes are listed by the authority
• the entities being serviced must be located in a financial action task force (FATF) complaint jurisdiction.
• A global inhouse centre setup within the IFSC is valid with concession applicable to IFSC units

What is Bullion market?

It is a market through which the buyers and sellers trade gold and silver.

Month: Current Affairs - October, 2020