#ifscentities

The International Financial Services Centres Authority (IFSCA) again shows its commitment to the deepening financial markets at the GIFT City IFSC. A Circular dated September 11, 2025, announced the significant opening of access to the bullion markets. The Bullion Exchange and Bullion Trading Members patronize investors through Authorized Persons (APs).

Advancing the Bullion Market  

The approval of market access through Authorized Persons (AP) is a significant step in developing the GIFT city bullion exchange and enhancing precious metals trading in IFSC. In this context, GIFT City provides a more compelling proposition for offshore investment in India, especially from a global investor's perspective, to have regulated investment opportunities in gold and silver. 

Prior to now, APs could only provide market access to stock exchanges, stock brokers, or broker-dealers, based on the Market Access Circulars, October 2020 and April 2022. With the addition of the bullion exchange, the anticipated opportunity for increased liquidity and investors in IFSC is considerable. 

The IFSCA also considered (in relation to this inclusion) requests from market participants, and the Authority made adjustments to provide for this market access, so that the securities and bullion markets in GIFT City would be comparable, contributing to the IFSC's reputation as an attractive destination for global flows of capital related to alternative investments. 

The Importance of Market Access Through Authorized Persons

The AP structure continues to bring more foreign and local investors to the market.

1. Global Reach

Authorized Persons can simplify market entry for foreign investors by being a trusted liaison. For foreign investors who want to invest without paying tax on gold and silver bullion, it becomes much easier. 

Investors from Asia, the Middle East, and Europe can now more easily access the regulated bullion market in GIFT City IFSC.

2. Local Reach

In India, Authorized Persons can reach sophisticated investors, especially in Fintech, along with Indian HNIs, family offices, and wealth management companies.

This increases domestic engagement in the IFSC bullion market and helps robust compliance.

3. GIFT City’s Value Proposition

The IFSC serves instruments for global equities, global as well as Indian real estate, and Indian debt. With bullion now part of the AP structure, it becomes easier for investors to diversify their portfolios.

Trading in precious metals within a tax-free investment region such as GIFT City enhances India’s global competitiveness in alternative asset classes.

Operational Impact and Next Steps

The circular has come into immediate effect, and there are tangible actions the Bullion Exchange must commence:

Amendments to the Rules: Changes to the new AP framework in the regulations, bylaws, and operational guidelines as they relate to the Bullion Exchange.

Market Communication: Ensuring members, brokers, and potential investors receive accurate information in a timely manner and through GIFT’s registered communication channels.

Firms undergoing GIFT City registration within the bullion framework will find this position very attractive. Trading members may onboard APs in a seamless manner and will be able to service a new global market.

A Safe and Regulated Entry Point for Precious Metals

The circular has legal standing from the IFSCA Act of 2019 and the IFSCA (Bullion Market) Regulations of 2025. These regulations will provide confidence to investors.

For foreign investors who come from bullion-rich countries such as Dubai, Singapore, and Hong Kong, this means:

A stable offshore environment.

Gold and silver investment opportunities without taxes. 

This is a part of a broader investment strategy to access India from abroad.

Expanding APs to the bullion exchange isn't just about minimal regulatory adjustments. This is an essential step in the development of the market. It further enhances the liquidity of the market, broadens the scope of the investors, and boosts the international standing of the GIFT City IFSC. 

For institutional investors, wealth managers, and FinTech companies, this development offers the first global financial hub in India an unprecedented opportunity to link their clientele to bullion trading. 

In summary: 

Foreign investors can access bullion trading legally and directly. 

Domestic investors can easily access bullion and actively manage their composite portfolios. 

GIFT City IFSC further enhances its reputation as the global powerhouse for alternative and commodity investments. 

The expansion of bullion market access through authorized persons is unlocking new investment avenues in GIFT City IFSC. This strategic move allows global investors, traders, and institutions to participate more efficiently in India’s regulated precious metals market, strengthening the country’s position as a global bullion trading hub.

In GIFT CFO, we specialize in helping businesses, traders, and investors leverage the evolving financial and investment ecosystem in GIFT City, Gandhinagar. Our expertise covers regulatory compliance, financial structuring, taxation, and advisory support for IFSC entities seeking to maximize their market opportunities.