Enhancements in the Bullion Ecosystem at GIFT City: Key Updates from IFSCA

IFSCA Official has announced two key regulatory changes aimed at enhancing the ease of doing business and improving operational flexibility in the bullion ecosystem at GIFT City. These changes are designed to create a more inclusive and dynamic trading environment.

India International Bullion Exchange IFSC Ltd (IIBX)

In a significant move, IFSCA has eliminated the minimum net worth requirement for all categories of Customers trading on the IIBX. This decision lowers the entry barrier for individuals and entities. Now, anyone can access and participate in the bullion market at IIBX without needing to meet a specific net worth threshold.

It’s important to clarify that this relaxation does not apply to Qualified Suppliers and Qualified Jewellers. These groups must still adhere to existing financial eligibility norms.

Impact of Removing the Net Worth Requirement

The removal of the net worth requirement holds various implications:

• Wider Participation: More participants can engage in bullion trading. This increase in the number of traders can enhance market liquidity and competition.

• Access for Individuals: Individuals no longer face the burden of meeting high financial criteria. This makes the market more accessible to newcomers.

• Encouragement for New Businesses: Small and medium enterprises can now begin trading without significant financial hurdles, fostering entrepreneurial growth.

  
  

2. Extended Trading Hours for Spot Bullion Contracts on IIBX

IFSCA has approved an extension of trading hours for spot contracts on IIBX. The trading period will now run from 9:00 AM to 9:30 PM, marking a significant 3-hour increase. This change aims to support Qualified Suppliers and CEPA TRQ (Tariff Rate Quota) holders significantly.

Benefits of Extended Trading Hours

• Same-Day Trades: The extended hours allow traders to execute same-day trades more efficiently. This is crucial for those who need to react quickly to market changes.

• Alignment with Global Markets: Late evening trading windows align well with global market activity, facilitating better pricing and opportunities for traders in IIBX.

  
  

These updates are expected to further position GIFT City as a competitive and investor-friendly global bullion trading hub.

Conclusion

The recent regulatory changes by IFSCA represent a major step forward for GIFT City's bullion market. By removing the net worth requirement and extending trading hours, IFSCA not only increases accessibility but also enhances operational flexibility.

Anticipated Future Developments

As GIFT City continues to evolve, further enhancements may be on the horizon. Potential developments could include:

• Technological Advancements: Improved trading technologies could be introduced to streamline processes.

• Increased Promotion: Greater marketing efforts may be directed towards attracting global participants.

  
  

These initiatives reflect IFSCA's commitment to creating a robust and vibrant bullion trading ecosystem.

📄 Reference: IFSCA Circular No. IFSCA-DMC/3/2023-Dept. of Metals and Commodities dated April 29, 2025

In summary, the recent changes by IFSCA are set to motivate participation and stimulate growth in the bullion market. As interest grows, the focus on creating an inclusive and flexible trading environment will be paramount.