In a step that reflects a progressive and responsive regulatory outlook, the International Financial Services Centres Authority (IFSCA) has issued a key circular — IFSCA-PMTS/10/2023-Precious Metals, dated 22nd September 2025 — announcing a major amendment to the eligibility criteria for Bullion Trading Members in India’s International Financial Services Centre (IFSC).
This circular, which is now in force, brings a crucial modification to the IFSCA Operating Guidelines on Bullion Exchange, Bullion Clearing Corporation, Bullion Depository, and Vault Manager, originally issued in August 2021. The change specifically addresses the professional experience requirements of employees working with bullion trading members.
🔍 What Was the Rule?
Until now, the IFSCA required bullion trading members to employ at least one person with a minimum of three years’ experience and sound knowledge in the precious metals industry. This requirement, while designed to ensure industry expertise, had the unintended consequence of limiting participation — especially for newer firms, fintech startups, and professionals transitioning from adjacent markets such as forex or securities.
🔁 What Has Changed?
With the newly issued amendment, the eligibility criterion has been revised to:
“Trading members shall have at least one employee who possesses not less than two years of experience in dealing in securities or foreign exchange or precious metals.“
This change, though subtle in language, carries significant practical impact.
✅ Why Is This Important?
By reducing the required experience from three years to two, and broadening the domain expertise to include securities and foreign exchange, IFSCA is:
- Opening doors for a wider talent pool, including professionals with strong financial market experience but limited exposure to bullion specifically.
- Encouraging cross-sector participation in the bullion ecosystem — from fintech, brokerage, and global trade sectors.
- Facilitating entry for new-age startups and smaller firms that may struggle to hire senior bullion professionals due to talent shortages or high costs.
- Maintaining market integrity by still requiring relevant, domain-specific experience.
This reflects IFSCA’s broader vision to build a vibrant, competitive, and globally aligned bullion market within India’s IFSC at GIFT City.
📘 Legal & Regulatory Context
The circular has been issued under the authority granted by:
- Section 12 and 13 of the IFSCA Act, 2019
- Regulation 78 of the IFSCA (Bullion Market) Regulations, 2025
This gives it full legal backing and ensures immediate enforceability.
📣 Final Word
The amendment by IFSCA is a forward-looking move that demonstrates the regulator’s openness to feedback, commitment to inclusive growth, and focus on long-term market development. As India aims to become a global hub for bullion trading through initiatives like the India International Bullion Exchange (IIBX), regulatory flexibility will be crucial in attracting and retaining market participants.
This change simplifies compliance while ensuring that essential expertise is not compromised — a balance that is critical in shaping the next generation of global financial centers.