Financial products and financial services notified - powers and functions of the Authority under International Financial Services Centres Authority Act, 2019 - S.O. 2957 (E) - Indian Law

MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 31st August, 2020 S.O. 2957(E). -In exercise of the powers conferred by sub-clause (vi) of clause (d)and sub-clause (xiv) of clause (e) of sub-section (1)of section 3 and clause (b) of sub-section (2) of section 12 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), the Central Government hereby notifies certain financial products and financial services and directs that that the powers and functions of the Authority shall include regulating the said financial products and financial services, namely: (A) Financial products: (i) bullion spot delivery contract; (ii) bullion depository receipt with underlying bullion; (B) Financial services: (i) trading in bullion depository receipts with underlying bullion in relation to bullion spot delivery contracts; (ii) provision of bullion financing, bullion based loans, bullion loans against collateral, bullion vaulting, clearing and settlement services in relation to bullion spot delivery contracts and bullion depository receipts. Explanation. For the purposes of this notification, (i) bullion shall mean precious metals including gold, silver or any other precious metal in the form of bars or unallocated gold, silver, or such other precious metals, as the Authority may consider relevant in this regard, relating to good delivery, quality, quantity, and any other aspect in relation to bullion trading , from time to time; (ii) bullion spot delivery contract shall mean a contract which provides for- (a) actual delivery of bullion and the payment of a price therefor either on the same day as the date of the contract or on the next day, the actual period for the delivery of the bullion or the remittance money therefor being excluded from the computation of the period aforesaid if the parties to the contract do not reside in the same town or locality; (b) transfer of the bullion by the depositary from the account of a beneficial owner to the account of another beneficial owner when such bullion is dealt with by a depositary licensed by the Authority for this purpose; (iii) bullion depository receipt with underlying bullion shall mean such bullion depository receipt listed on the International Bullion Exchange (IBE) operating inside the International Financial Services Centre and is licensed by the Authority under the said Act. 2. This notification shall be subject to the provisions of the International Financial Services Centres Authority Act, 2019 and the rules and regulations made thereunder. [F. No.3/7/2020-EM] ANAND MOHAN BAJAJ, Addl. Secy.