IFSCA Expands Gold and Silver Import Access Through IIBX: New Opportunities for SEZ Units and Advance Authorisation Holders

 The International Financial Services Centres Authority (IFSCA) issued a landmark circular on January 2, 2026, fundamentally transforming India's bullion import landscape by enabling new categories of entities to participate in gold and silver imports through the India International Bullion Exchange (IIBX). This comprehensive six-page regulatory document amends the existing framework and introduces flexible eligibility criteria for specialized traders.

Background and Context

This circular amends the IFSCA's October 10, 2025 Consolidated Circular titled "Import of gold or silver by Qualified Jewellers and valid India-UAE CEPA Tariff Rate Quota (TRQ) Holders through India International Bullion Exchange (IIBX)." The amendments emerged from stakeholder consultations and representations, reflecting the Authority's responsive approach to market needs.

Major Policy Decisions

The circular announces two fundamental policy shifts:

1. Relaxation of eligibility criteria to include SEZ units with jewelry export operations and Advance Authorisation holders
2. Clarification on silver imports removing the Qualified Jeweller requirement for specific silver bar imports

Detailed Eligibility Framework

Special Economic Zone (SEZ) Units - Tailored Requirements

SEZ units can now access IIBX for precious metals imports under specific conditions:

Financial Thresholds:

• Minimum net worth requirement of INR 5 crore (significantly reduced from the standard INR 15 crore)
• Net worth calculated from latest audited annual financial statements or audited/unaudited/reviewed quarterly/half-yearly statements
• Must demonstrate annual export turnover of at least INR 5 crore in goods under ITC (HS) Code 7113 for each of the last three financial years

Operational Requirements:

• Must hold a valid Letter of Approval
• Export of jewellery must be listed as an authorized operation
• Need to provide a certificate attested by a practicing chartered accountant, cost accountant, or company secretary
• Certificate must confirm that 35% of annual turnover in each of the last three financial years and current financial year comes from dealing in goods under ITC(HS) codes 7113, 7114, and 7118 (Chapter 71)

Advance Authorisation Holders - Streamlined Access

Entities holding valid Advance Authorisation issued by the Directorate General of Foreign Trade (DGFT) gain automatic eligibility to apply for Qualified Jeweller notification through IIBX, notwithstanding other standard eligibility criteria. However, they face specific operational restrictions:

Import Restrictions:

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

Silver Import Simplification

A critical clarification removes bureaucratic hurdles: entities importing silver bars under ITC (HS) Code 71069221 are no longer required to apply for or obtain Qualified Jeweller notification. This streamlines silver trade and reduces compliance burden.

Net Worth Definition and Calculation

The circular provides a precise definition of "Net Worth" for eligibility assessment:

Includes:

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

Excludes:

• Accumulated losses
• Deferred expenditure
• Miscellaneous expenditure not written off
• Reserves from asset revaluation
• Write-back of depreciation
• Amalgamation reserves

Continuous Compliance Framework

The circular establishes stringent ongoing compliance requirements:

Net Worth Maintenance:

• All Qualified Jewellers must maintain minimum applicable net worth at all times
• IIBX conducts half-yearly reviews to verify net worth compliance

SEZ-Specific Compliance:

• SEZ units must maintain annual export turnover of at least INR 5 crore in goods under ITC (HS) Code 7113 throughout their notification period

General Compliance:

• All Qualified Jewellers must continuously satisfy eligibility criteria specified in Clause 3 throughout their notification period

Suspension Mechanism:

• If any notified Qualified Jeweller fails to meet applicable eligibility criteria on an ongoing basis, IIBX shall immediately suspend their participation
• Suspension continues until eligibility criteria are fulfilled again
• If participation remains suspended for a continuous period of 6 months, the Qualified Jeweller notification becomes invalid

Notification Validity and Denotification

Validity Period:

• Qualified Jeweller notifications remain valid indefinitely unless denotified
• Denotification occurs either on application by the entity itself or automatic denotification after 6 months of continuous suspension

New Chapter on Advance Authorisation Imports

The circular introduces an entirely new Chapter IIA specifically addressing imports by Advance Authorisation holders:

Applicable Provisions:

• Clauses 11, 12, 13, and 14 from the original framework apply mutatis mutandis (with necessary modifications) to Advance Authorisation holders

Operational Framework:

• These Qualified Jewellers can only participate through Bullion Trading Members
• Strict adherence to import purposes and conditions specified in their Advance Authorisation

Logistics and Delivery Requirements for SEZ Units

A crucial operational requirement ensures proper regulatory oversight:

Direct Delivery Mandate:

• When SEZ units (notified as Qualified Jewellers under the relaxed criteria) import gold or silver through IIBX, Vault Managers must ensure direct delivery
• Following customs clearance, precious metals must be delivered directly to premises located within the SEZ
• Delivery must follow applicable SEZ procedures
• This provision prevents diversion and ensures SEZ benefits are properly utilized

Stakeholder Impact

Addressees of the Circular:

• Bullion Exchange in IFSC
• Bullion Clearing Corporation in IFSC
• Bullion Depository in IFSC
• Bullion intermediaries in IFSC
• Vault Managers in IFSC
• All market participants on the Bullion Exchange in IFSC

Legal Authority and Immediate Effect

The circular is issued under:

• Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019
• Regulation 78 of the International Financial Services Centres Authority (Bullion Market) Regulations, 2025
• Effective immediately from January 2, 2026

Consolidated Documentation

The Authority has compiled all previous circulars on gold and silver imports by eligible entities (including Qualified Jewellers and India-UAE CEPA TRQ holders) into a single Consolidated Circular. An updated version incorporating these latest amendments is being issued separately, ensuring all stakeholders have access to current, comprehensive guidance.

Strategic Significance

This circular represents a major step in developing India's position as a global bullion trading hub. By accommodating SEZ units and Advance Authorisation holders with tailored requirements, IFSCA balances market expansion with regulatory rigor. The framework particularly supports:

• Export-oriented jewelry manufacturers seeking efficient precious metals sourcing
• SEZ units leveraging preferential trade conditions
• Entities with DGFT authorizations streamlining their supply chains
• Overall enhancement of IIBX's role in India's precious metals ecosystem

The circular is accessible on the IFSCA website at www.ifsca.gov.in under "Legal → Circulars," ensuring transparency and broad stakeholder access.

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