In a strategic move aimed at deepening the bullion markets and enhancing investor access, the International Financial Services Centres Authority (IFSCA) issued a new circular on 11th September 2025. Titled “Market Access through Authorized Persons on Bullion Exchange,” this circular marks a significant regulatory milestone that extends the framework of market access—previously available to stock brokers—to bullion trading members and exchanges operating in the IFSC.
This initiative underscores IFSCA’s commitment to building a world-class, globally integrated bullion ecosystem within the GIFT City IFSC, India’s flagship international financial hub.
Background: What Prompted the Circular?
The foundation for this regulatory enhancement lies in earlier circulars issued by IFSCA—
- Circular dated 14th October 2020, and
- Circular dated 29th April 2022,
These provided a robust framework for stock brokers and broker-dealers in IFSC to appoint Authorized Persons (APs)—both from India and abroad—to offer market access to a broader investor base.
However, stakeholders in the bullion market requested a similar framework, citing the need for expanded investor participation and operational flexibility in a sector poised for significant growth.
Key Highlights of the Circular
Effective immediately, the latest circular extends, mutatis mutandis, the provisions of the earlier “Market Access Circulars” to the bullion market, including:
- Bullion Exchanges in the IFSC, and
- Bullion Trading Members operating within these exchanges
This means bullion market participants can now appoint Authorized Persons to offer trading access to investors, thereby widening their outreach and increasing trading volumes.
What This Means for the Bullion Ecosystem
Wider Market Access:
The move allows for a more inclusive participation model, where retail and institutional investors—whether based in India or overseas—can access IFSC bullion markets through APs without the need to register as direct trading members.
Boost to Market Liquidity:
With more participants entering the market via authorized intermediaries, liquidity and depth in the bullion exchange are expected to increase, improving price discovery and operational efficiency.
Alignment with Global Standards:
By mirroring international best practices for market access and intermediation, IFSCA is laying the groundwork for GIFT City to emerge as a preferred global bullion trading hub.
Regulatory Compliance & Responsibilities
The circular mandates the Bullion Exchange to:
- Amend its rules, regulations, and bye-laws accordingly,
- Disseminate the provisions of this circular across its ecosystem and upload it to its official website, ensuring full transparency and awareness among stakeholders.
The directive is issued under the authority granted by Sections 12 and 13 of the IFSCA Act, 2019, and Regulation 78 of the IFSCA (Bullion Market) Regulations, 2025.