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Corporate Laws Central Ministry of Finance International Financial Services Centres Authority Act, 2019

Qualified Suppliers for supply of bullion on India International Bullion Exchange IFSC Limited (IIBX)

01-May-2024 | 329/IFSCA/Bullion MIIs/2024-25/02

The International Financial Services Centres Authority has issued circular on Qualified Suppliers for supply of bullion on India International Bullion Exchange IFSC Limited (IIBX).

By virtue of the circular, eligible overseas entities are eligible to become Qualified Supplier on the IIBX, either as a client (QSClient) of a Bullion Trading Member or as a Qualified Supplier - Special Category Clients (QS-SCC) to facilitate supply of bullion at IIBX

1. Eligible units set up to supply bullion at IIBX shall be eligible to apply to become a Qualified Supplier on IIBX (as QS-IFSC), subject to compliance with various Regulations, Guidelines etc. issued by IFSCA. While any entity registered with IFSCA as bullion market intermediary shall be eligible to become a Qualified Supplier, other entities shall request a No Objection from the IFSCA for this purpose.

2. QS-IFSC, unless a Bullion Trading Member, shall participate on IIBX only as a client through a Bullion Trading Member.

3. QS-IFSC may bring their bullion into any of IIDIL empaneled Vaults operated by IFSCA registered Vault Managers in GIFT IFSC or in other SEZs. Bullion supplied at IIBX shall be sourced by such QS-IFSC directly from an LBMA-accredited refiner or a UAE Good Delivery accredited refiner or an entity which is a member of at least one of the prescribed associations/exchanges/jurisdictions, for a cumulative and contiguous period of five years.

4. QS-IFSC shall intimate IIDIL and IFSCA registered Vault Manager about supply of the bullion in IIDIL empaneled Vault adhering to the good delivery standards prescribed by IIBX for the creation of Bullion Depository Receipts (BDRs).

5. Bullion being supplied by QS-IFSC in IIDIL empaneled Vaults for trading on IIBX shall adhere to OECD Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict Affected and High-Risk Areas for establishing supply chain integrity.

For more information, please refer the attachment.

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