Complete Guide to India's Bullion Import Framework: IFSCA's Comprehensive Guidelines for Gold and Silver Imports Through IIBX (Updated January 2026)

The International Financial Services Centres Authority (IFSCA) has issued an updated Consolidated Circular on January 2, 2026, establishing a comprehensive regulatory framework for gold and silver imports through the India International Bullion Exchange (IIBX). This 14-page consolidated document integrates all previous circulars and introduces significant reforms to democratize access to India's bullion market while maintaining rigorous compliance standards.

Regulatory Background and Legal Foundation

This consolidated circular is issued under Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with Regulation 78 of the International Financial Services Centres Authority (Bullion Market) Regulations, 2025. It compiles instructions from the October 10, 2025 circular and the January 2, 2026 amendments into a single, comprehensive framework.

The regulatory framework stems from DGFT notifications (No. 49/2015-2020 dated January 5, 2022, No. 35/2023 dated October 11, 2023, and No. 08/2025-26 dated May 19, 2025) that specify which entities can import precious metals and under what conditions.

Chapter I: Eligibility Framework for Qualified Jewellers

Three Distinct Pathways to Qualification

The circular establishes three separate routes for entities to become Qualified Jewellers:

1. Standard Route (General Entities):

Business Activity Requirements:

Must be engaged in business of goods under ITC(HS) codes 7106, 7108, 7113, 7114, and 7118 (Chapter 71)
Must demonstrate either:
- 60% of annual turnover in each of the last three financial years AND current financial year from these goods, OR
- 90% of annual turnover in the previous entire financial year AND current financial year from these goods

Financial Requirements:

Minimum net worth of INR 15 crore from latest audited annual financial statements or audited/unaudited/reviewed quarterly/half-yearly statements
Certificate must be attested by practicing chartered accountant, cost accountant, or company secretary

Compliance Requirements:

Must have filed GST returns up to the preceding month/quarter prior to application
Must maintain minimum net worth at all times with half-yearly IIBX reviews

2. SEZ Units Route (Relaxed Criteria):

Business Activity Requirements:

Must hold valid Letter of Approval
Must have export of jewellery as an authorized operation
Only need 35% of annual turnover in each of the last three financial years and current financial year from goods under ITC(HS) codes 7113, 7114, and 7118 (narrower scope than standard route)

Financial Requirements:

Significantly reduced minimum net worth of INR 5 crore (versus INR 15 crore)
Must demonstrate annual export turnover of at least INR 5 crore in goods under ITC (HS) Code 7113 during each of the last three financial years
Financial statements can be audited annual OR audited/unaudited/reviewed quarterly/half-yearly

Ongoing Compliance:

Must maintain INR 5 crore annual export turnover in Code 7113 goods throughout notification period
Subject to half-yearly net worth reviews by IIBX

3. Advance Authorisation Route (DGFT Holders):

Entities holding valid Advance Authorisation issued by the Directorate General of Foreign Trade (DGFT) can qualify as Qualified Jewellers notwithstanding other eligibility criteria. This means they bypass standard turnover and net worth requirements.

Special Conditions:

Can only import gold or silver under ITC(HS) codes specifically mentioned in their Advance Authorisation
Imports must be exclusively for export purposes stated in the Authorisation
Must comply with the Condition Sheet forming part of the Authorisation
Can only participate through a Bullion Trading Member (not as Special Category clients)

Silver Import Simplification

A critical regulatory simplification: Any entity with a valid Importer Exporter Code (IEC) Certificate issued by DGFT can import silver bars under ITC(HS) Code 71069221 through IIBX without being notified as a Qualified Jeweller. This removes significant barriers to silver trade.

Import of silver bars under ITC(HS) Codes 71069221 and 71069229 is free, subject only to Reserve Bank of India (RBI) regulations, as per the extant Foreign Trade Policy.

Net Worth Definition

The circular provides a precise, exhaustive definition of "Net Worth":

Includes:

Paid-up share capital (or capital contribution)
All reserves created out of profits
Securities premium account
Debit or credit balance of profit and loss account

Excludes (Deductions):

Accumulated losses
Deferred expenditure
Miscellaneous expenditure not written off
Reserves created out of revaluation of assets
Write-back of depreciation
Amalgamation reserves

Continuous Compliance and Suspension Mechanism

Ongoing Requirements:

All Qualified Jewellers must maintain minimum applicable net worth at all times
IIBX conducts mandatory half-yearly reviews
SEZ units must maintain INR 5 crore annual export turnover in Code 7113 goods each financial year
All Qualified Jewellers must continuously satisfy Clause 3 eligibility criteria

Suspension Protocol: If a notified Qualified Jeweller fails to satisfy any applicable eligibility criteria on an ongoing basis, IIBX shall immediately suspend their participation from transacting on IIBX until criteria are fulfilled again.

Denotification: Qualified Jeweller notification remains valid unless:

The entity applies for denotification, OR
Participation remains suspended for a continuous period of 6 months (automatic denotification)

'Fit and Proper Person' Criteria

A cornerstone of the regulatory framework is the "fit and proper person" requirement, applicable to:

The applicant entity
All directors or managing partners
Promoters or shareholders holding 10% or more voting rights

Assessment Factors:

Integrity, honesty, ethical behaviour, reputation, fairness, and character

Disqualifications (comprehensive list):

Conviction for economic offences or securities/bullion market violations
Restraint, prohibition, or debarment orders from IFSCA or other regulatory authorities
Pending recovery proceedings initiated by IFSCA
Conviction for offences involving moral turpitude
Winding up proceedings initiated or orders passed
Declared insolvent and not discharged
Found to be of unsound mind by competent court
Categorized as wilful defaulter
Declared fugitive economic offender
Any other disqualification specified by IFSCA

IIBX must ensure Qualified Jewellers continue to comply with 'fit and proper person' criteria at all times for notification to remain active.

Application and Notification Process

Step-by-Step Procedure:

Step 1 - Application Submission: Entity (applicant) submits duly filled application to IIBX with:

All requisite supporting documents
Applicable fees
Declaration of participation preference (client of Bullion Trading Member OR Special Category client)

Step 2 - IIBX Scrutiny:

IIBX scrutinizes application to verify eligibility criteria fulfillment
May seek additional documents, clarifications from applicant
IIBX formulates Standard Operating Procedures (SOPs) for onboarding, including KYC procedures

Step 3 - IIBX Recommendation: Upon verification, IIBX forwards application and related documents to IFSCA with recommendations

Step 4 - IFSCA Notification: IFSCA, upon satisfaction, notifies the entity as Qualified Jeweller by:

Issuing notification letter to the entity
Intimating IIBX
Publishing updated list of notified Qualified Jewellers on www.ifsca.gov.in

Backward Compatibility: Qualified Jewellers already notified under previous circulars (dated January 19, 2022, August 5, 2022, and December 11, 2023) for specific ITC(HS) codes are deemed to have been notified for the new codes as well (71081210, 71081290, 71069120, 71069221, and 71069229).

Two Participation Models

Model 1: Client of Bullion Trading Member

Entity gets onboarded as client with registered Bullion Trading Member
Follows applicable norms for client relationships
Available to all Qualified Jewellers

Model 2: 'Special Category' Client (Direct Access)

Eligible only for companies incorporated under Companies Act, 2013 (or preceding law) OR Limited Liability Partnerships under LLP Act, 2008
Can transact on own account only
Permitted direct access to IIBX trading system
Must associate with Bullion Clearing Member for clearing purchase transactions
NOT considered a Trading Member or intermediary
Cannot onboard clients

Chapter II: India-UAE CEPA TRQ Framework

Valid India-UAE CEPA TRQ Holders

The circular establishes a special framework for importing UAE Good Delivery (UAEGD) Gold under the India-UAE Comprehensive Economic Partnership Agreement (CEPA):

Eligibility: Valid holders of India-UAE Tariff Rate Quota (TRQ) licence/authorisation allotted by DGFT are eligible to apply for IFSCA notification as 'valid India-UAE CEPA TRQ holders'

Participation Rules:

Can participate on IIBX only through Bullion Trading Members (not as Special Category clients)
Can only 'buy' UAEGD gold (no selling permitted)
Subject to quota and other applicable terms and conditions

Notification Validity:

Valid for duration of TRQ licence/authorisation's validity
Remains valid for subsequent financial years if:
- Entity has been allotted TRQ licence/authorisation by DGFT for that year, AND
- Has been continually allotted TRQ (every year or per DGFT frequency) since original IFSCA notification

Annual Renewal Process: Before permitting imports, IIBX must ensure holder submits copy of newly issued TRQ licence/authorisation from DGFT, which IIBX forwards to IFSCA

Qualified Jeweller Exception: Qualified Jewellers holding valid TRQ licence/authorisation under India-UAE CEPA are automatically permitted to import UAEGD gold through IIBX without separate notification as 'valid India-UAE CEPA TRQ holders'

Onboarding and Compliance

IIBX, coordinating with India International Depository (IFSC) Ltd. (IIDIL), specifies SOPs for onboarding
Imports must comply with TRQ Scheme governed by applicable guidelines and Handbook of Procedures under Foreign Trade Policy
Must adhere to RBI's 'Master Direction – Import of Goods and Services' and other relevant circulars/guidelines

Chapter IIA: Advance Authorisation Framework (NEW)

This newly inserted chapter applies specifically to entities holding Advance Authorisation issued by DGFT and notified as Qualified Jewellers:

Application of Existing Provisions: Clauses 11, 12, 13, and 14 (from Chapter II on India-UAE CEPA) apply mutatis mutandis (with necessary modifications) to Advance Authorisation holders

Specific Operational Constraints:

Can only participate through Bullion Trading Member
Can import gold or silver only under ITC(HS) codes mentioned in their specific Advance Authorisation
Imports must be exclusively for export of items mentioned in Advance Authorisation
Must comply with Condition Sheet forming part of Authorisation

This creates a parallel framework similar to CEPA TRQ holders but with different underlying authorization basis.

Chapter III: Advance Remittance Framework

RBI Guidelines Integration

The chapter integrates multiple RBI circulars:

A.P. (DIR Series) Circular No. 04 (May 25, 2022) - gold import by Qualified Jewellers
A.P. (DIR Series) Circular No. 07 (November 10, 2023) - silver import by Qualified Jewellers
A.P. (DIR Series) Circular No. 14 (January 31, 2024) - gold import by TRQ holders

Advance Remittance Process

IIBX Document Issuance: IIBX must establish systems for issuing authenticated documents containing:

Indicative price of gold/silver
Quantity and/or quality (purity) intended for import
This document serves as basis for Authorised Dealer (AD) banks to allow advance payment remittance

Remittance Protocol:

Eligible entities (Qualified Jewellers and valid India-UAE CEPA TRQ holders) remit foreign currency through AD bank in India
Remittance in manner specified by IIBX
For purchase of Bullion Depository Receipts (BDRs) only
Exclusively for importing gold or silver

Chapter IV: Purchase and Delivery of BDRs

One-Way Trading Restriction

Critical Rule: Qualified Jewellers and valid India-UAE CEPA TRQ holders are only permitted to purchase BDRs on IIBX for import. They are prohibited from entering sell orders in any manner. IIBX must implement necessary systems and processes to enforce this restriction.

SEZ-Specific Delivery Requirements

When gold or silver is imported by SEZ Units notified as Qualified Jewellers (under relaxed eligibility criteria):

Mandatory Direct Delivery:

Vault Manager must ensure direct delivery following customs clearance
Must be delivered to premises located within the SEZ
Delivery must follow applicable SEZ procedures
Prevents diversion and ensures proper utilization of SEZ benefits

Account Management and Reconciliation

Daily Reconciliation:

IIBX ensures Bullion Trading Members/Bullion Clearing Members issue daily statements of accounts to each Qualified Jeweller and TRQ holder
Statements must contain:
- Advance remittance amount
- Amount of remittance utilized
- Unutilized amount as of end of day

11-Day Time Limit: Any unutilized advance remittance at end of eleven (calendar) days from remittance date must be compulsorily remitted back to the AD bank in India from where it was received. This is for reconciliation of Outward Remittance Message (ORM) and Bill of Entry (BOE) per RBI regulations.

Clearing Bank Protocols

IFSC Banking Units (IBUs) acting as authorized Clearing Banks must:

Account Management:

Receive remittance with unique client code for each Qualified Jeweller/TRQ holder in designated accounts
Ringfence advance remittance amounts by restricting debits except for:
- Applicable charges
- Pay-out for BDR purchases
- Refund of excess/unutilized amounts within 11-day limit

Transaction Restrictions:

Prohibit any credits to such accounts except fresh inward remittance through AD bank as advance payment for BDR purchase
No other debits or credits permitted

BDR Extinguishment Process

Joint Committee: IIBX and IIDIL form joint consultative committee for process streamlining

Timeline Compliance: In coordination with IFSCA-registered vault manager, must ensure:

BDR purchased by Qualified Jeweller/TRQ holder is extinguished
Bill of Entry filed before expiry of eleven (calendar) day period

Documentation: IIBX and IIDIL may specify detailed Standard Operating Procedures/Guidelines/Circulars for relevant stakeholders and participants

Anti-Money Laundering (AML) and Know Your Customer (KYC) Framework

Comprehensive AML/CFT Compliance

Primary Framework: International Financial Services Centres (Anti Money Laundering, Counter Terrorist-Financing and Know Your Customer) Guidelines, 2022 (as amended) applies to:

All Qualified Jewellers
All valid India-UAE CEPA TRQ holders

Onboarding Compliance: IIBX, coordinating with IIDIL, must ensure onboarding follows procedures under IFSCA AML/CFT/KYC Guidelines, 2022

Additional Compliance: Qualified Jewellers and TRQ holders must also adhere to:

"AML CFT guidelines for dealers in precious metals and precious stones, 2023"
Issued by Directorate General of Audit Indirect Taxes and Customs
Under Prevention of Money Laundering Act, 2002 and notified rules

Account Compliance Requirements

Qualified Jewellers and TRQ holders must ensure their accounts remain compliant at all times with IFSCA AML/CFT/KYC Guidelines across all touchpoints:

IIBX accounts
IIDIL accounts
Bullion Trading Member accounts
Bullion Clearing Member accounts
Bullion Depository Participant accounts

Surveillance and Market Integrity

IIBX Surveillance Responsibility

Primary Responsibility: IIBX holds responsibility for surveillance of entire Bullion ecosystem in IFSC

Infrastructure Requirements: IIBX must establish:

Necessary infrastructure for live surveillance
Monitoring mechanisms
Safeguards and controls
Systems to maintain market integrity

Participant Obligations:

Qualified Jewellers and TRQ holders must comply with code of conduct
Must follow operational guidelines issued by IIBX

Reporting Requirements

Monthly Reports to IFSCA: IIBX must submit comprehensive monthly reports providing:

Transaction details in bullion by Qualified Jewellers
Products traded details
Quantity and value traded
Quantity of gold/silver imported
Other relevant transactional data

Regulatory Compliance and Additional Requirements

General Compliance: All Qualified Jewellers must comply with:

International Financial Services Centres Authority (Bullion Market) Regulations, 2025
Operating Guidelines specified by IFSCA on August 25, 2021
Other regulatory requirements specified and amended by IFSCA and IIBX from time to time

Strategic Impact and Market Implications

Democratization of Bullion Trade

This consolidated circular represents a watershed moment in India's bullion market evolution:

Expanded Access:

Three distinct pathways accommodate different business models
SEZ units benefit from significantly reduced barriers (INR 5 crore vs INR 15 crore)
Advance Authorisation holders gain streamlined access
Silver imports dramatically simplified

Export Promotion:

Framework strongly supports export-oriented businesses
SEZ integration promotes "Make in India" for jewelry
Advance Authorisation route aligns with export commitments

Regulatory Sophistication:

Comprehensive AML/CFT framework comparable to global standards
Real-time surveillance capabilities
Robust compliance mechanisms with clear suspension protocols

Market Efficiency:

11-day remittance cycle ensures capital efficiency
Direct delivery for SEZ units reduces logistical friction
Ringfenced accounts protect against misuse

IIBX as Global Bullion Hub

This framework positions IIBX as:

Premier platform for India's bullion imports
Transparent, regulated alternative to traditional channels
Gateway for India-UAE CEPA benefits
Model for emerging market bullion exchanges

Document Accessibility

The complete consolidated circular is available on the IFSCA website at www.ifsca.gov.in under "Legal → Circulars"

Contact Information: Ramaneesh Goyal
Deputy General Manager
Market Regulation Division
Department of Metals and Commodities
Email: ramaneesh.goyal@ifsca.gov.in
Tel: +91 79 6180 9886

This comprehensive 14-page consolidated circular, effective immediately, represents the definitive regulatory framework for gold and silver imports through IIBX. By consolidating multiple previous circulars and introducing targeted reforms, IFSCA has created a sophisticated, accessible, and compliance-focused ecosystem that balances market expansion with regulatory integrity, positioning India as a significant player in global bullion markets.