TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Bullion Market) Regulations, 2025.
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....nancial Services Centres Authority (Bullion Market) Regulations, 2025. (2) These regulations shall come into force on the date of their notification in the Official Gazette. Definitions 2. (1) In these regulations, unless the context otherwise requires, the terms defined herein shall bear the meanings assigned to them below, and their cognate expressions and variations shall be construed accordingly: (a) "Act" means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) "associate", in relation to a person, shall include another person: (i) who, directly or indirectly, by himself or in combination with other persons, exercises control over the first person; (ii) who holds control of at least twenty per cent. of the total voting rights of the first person; (iii) who is a holding company or a subsidiary company of the first person; (iv) who is a relative of the first person; (v) who is a member of a Hindu Undivided Family wherein the first person is also a member; (vi) such other cases where the Authority is of the view that a person shall be considered as an associate based o....
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....ns an entity having trading rights in a bullion exchange; (n) "consumer" or "client" means a constituent of a bullion trading member and includes special category client or such other persons as may be specified by the Authority; (o) "control" includes the right to appoint majority of the directors or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding or management rights or shareholders agreements or voting agreements or in any other manner. Provided that a director or officer of a target company shall not be considered to be in control over such target company, merely by virtue of holding such position; (p) "depositor" or "supplier" means a consumer who delivers bullion to the vault manager empaneled with any bullion depository for its storage in vault; (q) "foreign jurisdiction" means a country, other than India, whose securities market regulator is a signatory to International Organization of Securities Commission's Multilateral Memorandum of Understanding (Appendix A signatories) or a signatory to bi....
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....clearing corporation may specify in its bye-laws, of the transactions admitted for settlement at a future date, so that only a net claim be demanded, or a net obligation be owed; (v) "net worth" means the aggregate value of paid up equity share capital plus share premium account and free reserves (excluding statutory funds, benefit funds and reserves created out of revaluation) reduced by the investments in businesses, whether related or unrelated, aggregate value of accumulated losses and deferred expenditure not written off, including miscellaneous expenses not written off; (w) "non-independent director" means a director elected or nominated by the shareholders who is neither a bullion trading member nor bullion clearing member, as the case may be, or their associates or agents; (x) "novation" means the act of bullion clearing corporation interposing itself between the parties of every trade, as a legal counterparty; (y) "participant" means a bullion depository participant registered as such under these regulations; (z) "public" includes any member or section of the public but does not include any bullion trading member or bullion clea....
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....ion (1) shall contain such particulars as may be specified by the Authority, and shall be accompanied by the copy of the memorandum of association, articles of association, bye-laws and such other documents for the regulation and control of bullion contracts including: (a) with regard to the governing board of such bullion exchange or bullion clearing corporation, its constitution and powers of management and the manner in which its business is to be transacted; (b) the powers and duties of the office bearers of the bullion exchange or bullion clearing corporation; (c) the admission of various classes of members into the bullion exchange or bullion clearing corporation, the qualifications for membership, and the exclusion, suspension, expulsion and re- admission of such members; (d) such other matter(s) as may be specified by the Authority. Conditions for grant of recognition as a Bullion Exchange or Bullion Clearing Corporation 4. (1) An applicant seeking recognition as a bullion exchange or bullion clearing corporation, as the case may be, shall comply with the following conditions, namely: (a) the applicant is a company limited ....
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....onal and other relevant experience; and (k) any other conditions as may be specified by the Authority. (3) An applicant seeking recognition as a bullion clearing corporation shall, in addition to the conditions as specified in sub-regulation (1), comply with the following conditions, namely: (a) the applicant has necessary infrastructure to ensure timely clearing and settlement of trades; (b) the applicant has an adequate risk management mechanism; (c) the applicant has a settlement procedure including netting, novation and guarantee for settlement of trades in place, which is in accordance with the manner specified by the Authority; (d) the applicant has the capacity to establish a fund to guarantee settlement of trades; (e) the applicant has necessary capability to have a wide network of bullion clearing members and adequate facility to admit and regulate its members; (f) the applicant has necessary capability to establish connectivity with bullion depository, clearing banks, bullion exchange and bullion clearing members; (g) the applicant has adequate systems' capacity for on-line/real time risk manag....
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....asis, shall be for such period not less than one year as may be specified by the Authority. Renewal of recognition 7. (1) The provisions of these regulations, as applicable to the grant of recognition, shall also apply in relation to an application for renewal of recognition of a bullion exchange or a bullion clearing corporation. (2) The bullion exchange or a bullion clearing corporation shall comply with the applicable conditions specified in sub-regulation (2) and sub-regulation (3) of regulation 4, as the case may be, on a continuous basis. Withdrawal of recognition 8. The recognition granted to a bullion exchange or a bullion clearing corporation may be withdrawn by the Authority, after being given an opportunity of being heard, in the manner provided under Section 5 of the Securities Contracts (Regulation) Act, 1956. Code of conduct for Bullion Exchange or Bullion Clearing Corporation 9. A bullion exchange or a bullion clearing corporation shall abide by the Code of Conduct as specified under Part-A of Schedule-I of these regulations. CHAPTER III OPERATIONAL FRAMEWORK OF BULLION EXCHANGE Clearing and settlement of trades 10. Every bullion exch....
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....ion in consultation with the bullion depository; and (j) performing such other functions as may be specified by the Authority. CHAPTER IV GENERAL OBLIGATIONS OF BULLION CLEARING CORPORATIONS General Obligations 13. A bullion clearing corporation shall comply with these regulations and the agreement entered into with the concerned bullion exchange in addition to complying with such other conditions as may be imposed by the Authority. Settlement and Netting 14. (1) The payment and settlement in respect of a transaction in a bullion exchange or a bullion clearing corporation shall be determined in accordance with the netting or grossing procedure as specified in the bye-laws of such bullion exchange and bullion clearing corporation. (2) Payment and settlement in respect of a transaction between parties referred to in sub- regulation (1), effected under the bye-laws of a bullion exchange or bullion clearing corporation, shall be final, irrevocable and binding on such parties. (3) When a settlement has become final and irrevocable, the right of the bullion exchange or the bullion clearing corporation, as the case may be, to appropriate any collaterals or....
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....pecified in this regulation is achieved. (5) Every bullion exchange or bullion clearing corporation shall submit an audited net worth certificate to the Authority issued by statutory auditor on an yearly basis by the thirtieth day of September of every year for the preceding financial year. CHAPTER VI OWNERSHIP OF BULLION EXCHANGE AND BULLION CLEARING CORPORATION General conditions 18. (1) Save as otherwise provided in these regulations, the shareholding or voting rights of a person in a bullion exchange or a bullion clearing corporation shall not exceed the limits mentioned in this Chapter at any point of time. (2) The shareholding as mentioned in this Chapter shall include any instrument owned or controlled, directly or indirectly, that provides for entitlement to equity or rights over equity at any future date. Shareholding in a bullion exchange 19. (1) The shareholding in a bullion exchange shall be held by: (a) a bullion exchange or stock exchange recognised in India or a Foreign Jurisdiction with a minimum of twenty-six per cent. of the paid-up equity share capital of the bullion exchange; or (b) a joint venture of market infrastructu....
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....er person: Provided that the onus shall be on the bullion exchange or bullion clearing corporation to ensure that all its shareholders are fit and proper persons: Provided further that such a requirement to ensure that all its shareholders are fit and proper persons shall not be applicable to a bullion exchange or bullion clearing corporation for shareholding of a person who, directly or indirectly, acquires or holds less than two per cent. equity shares or voting rights of such bullion exchange or bullion clearing corporation. (2) Any person eligible to acquire or hold more than five per cent. of the paid-up equity shares or voting rights may acquire or hold more than five per cent. of the paid-up equity shares or voting rights in a bullion exchange or bullion clearing corporation only if it has obtained prior approval from the Authority. (3) The application for seeking approval in terms of sub-regulation (2) of this regulation shall be made to the Authority through the concerned bullion exchange or bullion clearing corporation. (4) The bullion exchange or bullion clearing corporation shall verify the declarations or undertakings given by the shareholders and forwar....
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.... member or clearing member in an International Financial Services Centre, or their associates and agents, irrespective of the bullion exchange or bullion clearing corporation of which they are members, shall be on the governing board. (8) For the purposes of sub-regulation (7), a person who is a director in an entity, which is a trading member or clearing member or has associate(s) as trading member(s) or clearing member(s), shall be deemed to be a trading member or clearing member. Provided that a person shall not be deemed to be trading member or clearing member or their associate for the purpose of sub-regulation (7), if she is on the board of a public financial institution or scheduled commercial bank and such public financial institution or scheduled commercial bank or its associate is a trading member or clearing member: Provided further that the independent directors of the associates of public financial institution or scheduled commercial bank, who are trading member and/or clearing member and where the majority shareholding is that of such public financial institution or scheduled commercial bank, shall not be deemed to be a trading member and/or clearing member f....
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....e public interest directors on the governing board of the bullion exchange and the bullion clearing corporation shall be appointed with the prior approval of the Authority. (3) Public interest directors shall be appointed for a term of three years, extendable by another term of three years, subject to performance review in a manner as may be specified by the Authority: Provided that no person above the age of seventy-five years shall be eligible to act as a public interest director on the board of a bullion exchange or a bullion clearing corporation. (4) A public interest director on the board of a bullion exchange or a bullion clearing corporation shall not act simultaneously as director on the board of its subsidiary or on the board of any other Market Infrastructure Institution in an International Financial Services Centre or on the board of subsidiary of such other Market Infrastructure Institution in an International Financial Services Centre. (5) A public interest director on the board of a bullion exchange or a bullion clearing corporation shall keep its governing board apprised of any conflict of interest, which may arise as a result of the public interest direc....
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....ration or shareholder of an associate of a bullion exchange or bullion clearing corporation, as the case may be; (b) be a bullion trading member or a bullion clearing member or her associate or agent or shareholder of a bullion trading member or bullion clearing member or shareholder of an associate or agent of a bullion trading member or a bullion clearing member; or (c) hold any position concurrently in the subsidiary of a bullion exchange or a bullion clearing corporation or in any other entity associated with a bullion exchange or a bullion clearing corporation: Provided that the managing director of a bullion exchange may be appointed on the governing board, but not as managing director, of the subsidiary of a bullion exchange or a bullion clearing corporation. (5) The managing director shall be liable for removal or termination of services by the governing board of the bullion exchange or bullion clearing corporation with the prior approval of the Authority for failure to give effect to the directions, guidelines and other orders issued by the Authority or the rules, the articles of association, bye-laws. and regulations of the bullion exchange or the ....
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....tions under the vertical referred to in clause (c) of sub-regulation (1). (4) The bullion exchange or bullion clearing corporation shall periodically and objectively assess the adequacy of resources allocated to the first two verticals as mentioned in sub-regulation (1). Statutory Committees 30. (1) A bullion exchange or a bullion clearing corporation shall constitute such Committees, as may be specified by the Authority. (2) The composition, quorum and functions of the committees under sub-regulation (1) shall be in the manner specified by the Authority. Appointment of Compliance Officer 31. (1) A bullion exchange or bullion clearing corporation shall appoint a Compliance Officer who shall be responsible for monitoring the compliance of the provisions of the Act or relevant rules, regulations and circulars, guidelines or directions issued thereunder by the Authority or any other regulatory Authority, and also for the redressal of customers' grievances. (2) The Compliance Officer shall immediately and independently report to the Authority, any non-compliance as referred to in sub-regulation (1) observed by her and shall also submit a report thereon, to the ....
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....rporation shall appoint a Chief Information Security Officer separately and in addition to a Chief Technology Officer. (2) The Chief Information Security Officer shall be responsible for overseeing the cyber security posture of bullion exchange or bullion clearing corporation and shall report directly to the Managing Director or Chief Executive Officer. CHAPTER VIII GENERAL OBLIGATIONS OF BULLION EXCHANGE AND BULLION CLEARING CORPORATION Consumer Education and Protection Fund 35. Every bullion exchange shall establish a consumer education and protection fund to promote consumer education and provide compensation to consumers in case of defaults by the bullion trading members, in a manner as may be specified by the Authority. Settlement Guarantee Fund 36. (1) Every bullion clearing corporation shall establish and maintain a Settlement Guarantee Fund to guarantee the settlement of trades executed on a bullion exchange. (2) The contribution to the Settlement Guarantee Fund shall be made by the bullion exchange, the bullion clearing corporation, the bullion trading members and clearing members, in a manner as may be specified by the Authority. (3) In the even....
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....d be complied with by non-shareholder bullion exchange to obtain access to clearing and settlement services. (3) The bullion exchange and bullion clearing corporation shall ensure equal, unrestricted, transparent and fair access to all persons without any bias towards their associates and related entities. (4) If any issue arises regarding non-discriminatory access to services of a bullion clearing corporation, the decision of the Authority decision shall be final. Information and Data Sharing Policy 39. (1) Every bullion exchange or bullion clearing corporation shall lay down a framework for sharing and monitoring of data, including confidential and sensitive data. (2) Such framework shall contain: - (a) means and manner of data sharing; (b) types of data that can be shared; (c) escalation matrix for data sharing; (d) provisions to have a digital database for recording details of information shared along with recipients and reasons for sharing, etc .; (e) mechanism to monitor the data shared, utilizing technology, conducting periodic audits to ensure compliance with the policy framework; and (f) accountability me....
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....h has necessary infrastructure and standards for safe storage of the bullion; (2) The Authority shall, before granting an approval to a bullion depository to commence its operations under these regulations, make a physical verification of the infrastructure facilities and systems established by the bullion depository. CHAPTER XI RIGHTS AND OBLIGATIONS OF BULLION DEPOSITORIES, PARTICIPANTS AND BENEFICIAL OWNERS Agreement between a Bullion Depository and a Participant 44. (1) A bullion depository may, if the Authority so desires, enter into an agreement with one or more participants as its agent. (2) Every agreement under sub-regulation (1) shall be in such form as may be specified in the bye-laws of such bullion depository. Services of a Bullion Depository 45. Any person, directly or through a participant, may enter into an agreement, in such form as may be specified by the bye-laws, with any bullion depository for availing its services. Registration of transfer of Bullion Depository Receipt 46. Every bullion depository shall, on receipt of intimation, directly or from a participant, register the transfer of bullion depository receipt in the name of the....
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.... the loss due to the negligence of the participant under sub- regulation (1) is indemnified by the bullion depository, the bullion depository shall have the right to recover the same from such participant. CHAPTER XII VAULT MANAGERS Registration of Vault Managers 52. (1) A vault manager shall make an application to the Authority in the form and manner specified by the Authority for obtaining registration, along with an undertaking acknowledging and agreeing to the liabilities under regulation 54. (2) The Authority may specify the requirements, including net worth of the vault manager and infrastructure for operating a vault for storing the bullion. (3) The Authority after satisfying itself may grant registration to the applicant. (4) The Authority shall not reject any application of registration without giving an opportunity of being heard to the applicant. Liabilities of Vault Managers 53. (1) A vault manager shall be liable for any loss of or injury caused to the bullion stored in a vault managed by it. Provided that if the bullion is damaged or lost, in spite of taking all reasonable care and precautions by the vault manager, a compensation equal to th....
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....by the Authority. (4) At the time of deposit of the bullion, if so directed by the Authority, the vault manager shall engage the services of an assayer for the purpose of testing the good delivery standard of the bullion. Creation of Bullion Depository Receipt 57. (1) Every depositor and beneficial owner shall have an account with the bullion depository. (2) On receipt of bullion from a depositor and after execution of all requisite documents, the bullion depository shall create and manage the bullion depository receipt issued in the name of such depositor in dematerialised form in such manner as may be specified by the Authority. Particulars of Bullion Depository Receipts 58. (1) Bullion depository receipts shall be a document of title to bullion containing the following particulars, namely: (a) Bullion depository receipt number; (b) vault registration number; (c) name of the vault and its complete postal address; (d) name and address of the depositor; (e) date of issue of the bullion depository receipt; (f) statement that the bullion received shall be delivered to the beneficial owner thereof; (g) de....
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.... reputation and record of fairness and integrity, including but not limited to - (i) financial integrity; (ii) good reputation and character; and (iii) honesty; (b) such person has not incurred any of the following disqualifications - (i) has been convicted by a court for any offence involving moral turpitude or any economic offence or any offence of the securities laws; (ii) an order for winding up has been passed against the person; (iii) the person, or any of its whole-time directors or managing partners, has been declared insolvent and has not been discharged; (iv) an order, restraining, prohibiting or debarring the person from dealing in securities or from accessing the securities market or the bullion market, has been passed by the Authority or any other regulatory authority and a period of three years from the date of the expiry of the period specified in the order has not elapsed; (v) any order against the person which has a bearing on the bullion market, has been passed by the Authority or any other regulatory authority and a period of three years from the date of the order has not elapsed; ....
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....e case may be, subject to fulfilment of conditions with regard to eligibility requirements as specified by the Authority and forwarded to the Authority with recommendation for granting registration. (5) The Authority may, by order, either suo-motu or on the recommendation of the concerned bullion exchange or bullion clearing corporation or bullion depository as the case may be, suspend or cancel a certificate of registration of an intermediary. Provided that, except in the case of voluntary surrender of certificate of registration, no order under this sub-regulation shall be made unless the person concerned has been given an opportunity of being heard. Explanation: The voluntary surrender of certificate of registration shall be effective only after approval by the Authority. CHAPTER XVI ENQUIRIES, INSPECTION AND ENFORCEMENT Power to call for Information 65. The Authority may from time to time call for any information, documents or records from the bullion exchange or the bullion clearing corporation or the bullion depository or the vault manager, or their governing board or any shareholder thereof. Power of Inspection 66. (1) The Authority may at any time....
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.... on any recognised stock exchange if it has completed three years of continuous operations immediately preceding the date of application and has obtained prior approval of the Authority. (2) The Authority may specify such conditions as it may deem fit in the interest of bullion or securities market including those in relation to transfer of shares held by any person in such bullion exchange or bullion depository. CHAPTER XVIII MISCELLANEOUS Maintenance of website 70. Every bullion exchange, bullion clearing corporation, bullion depository and vault manager shall maintain a website or any other universally accessible repository of electronic information to: i. publish all information that it is obliged to publish under these regulations; ii. host all rules, regulations, bye-laws and guidance issued by it, including all amendments therein; iii. provide information about the manner in which applications are to be made for its membership or association, as the case may be; and iv. provide material information about its functions. Annual net worth certificate 71. Every bullion exchange, bullion clearing corporation and bullion dep....
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....latory fee, as may be specified by the Authority. (2) Every bullion exchange, bullion clearing corporation, bullion depository and intermediary shall submit such further information or clarification with respect to fee payable as may be required under this regulation. Bye-laws and rules 75. (1) A bullion exchange and bullion clearing corporation shall, with the prior approval of the Authority, make bye-laws for the regulation of bullion contracts and its clearing and settlement, as the case may be, in accordance with Section 9 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and these regulations; (2) No memorandum of association, articles of association or any other constitutional documents, in so far as they relate to matters specified in section 3 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or under these regulations, and bye-laws of a bullion exchange or a bullion clearing corporation, shall be amended except with prior approval of the Authority. (3) Any amendment(s) proposed to be carried out to the memorandum of association, articles of association, rules, bye-laws, etc., of a bullion exchange or bullion clearing corporation s....
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....rnational Financial Services Centres Authority (Bullion Exchange) Regulations, 2020 shall stand repealed. (2) On and from the commencement of these regulations, the following circulars issued by the Authority shall stand superseded: a. Circular No. F. No.286/IFSCA/CMD-DMIIT/PM/2021 dated September 13, 2021 - Code of Conduct and Code of Ethics for the Directors and Key Management Personnel (KMP) of recognised Market Infrastructure Institutions (MIIs) in GIFT- IFSC, b. Circular No. 286/IFSCA/CMD-DMIIT/PM/2021/001 dated November 30, 2021 - Clarification regarding disclosure of dealing in securities by Directors and Key Management Personnel of the all recognised MIIs in GIFT-IFSC, and c. Circular No. F. No.329/IFSCA/Bullion MIIs/2022-23 dated March 01, 2023 - Net worth requirements for a Bullion Exchange and a Bullion Clearing Corporation. (3) Notwithstanding such repeal and supersession, - a. anything done or any action taken or purported to have been done or taken including registration, recognition or approval granted, suspended or cancelled, fees collected, any adjudication, enquiry or investigation commenced or show- cause notice issued, u....
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.... (f) promptly inform the Authority of any violations of the provisions of the Act, the Securities Contracts (Regulation) Act, 1956, or any rules, notifications, regulations, circulars, guidelines or directions issued under these Acts, committed by any of its members or customers. (g) take a proactive and responsible attitude towards safeguarding the interests of customers, integrity of bullion exchange's or bullion clearing corporation's systems, the bullion market and the securities market. Code of Conduct for Bullion Depository A bullion depository shall: (a) always abide by the provisions of the Act, the Securities Contracts (Regulation) Act, 1956, the Depositories Act,1996, or any rules, notifications, regulations, circulars, guidelines or directions issued under these Acts. (b) adopt appropriate due diligence measures. (c) take effective measures to ensure implementation of proper risk management framework and good governance practices. (d) take appropriate measures towards investor protection and education of investors. (e) treat all its applicants and members in a fair and transparent manner. (f) ....
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.... (h) ensure adequate independence of key functions such as regulatory and control functions (risk management, compliance and audit functions) such that; (i) regulatory and control functions have sufficient stature to perform their tasks effectively, (ii) regulatory and control functions operate independently and have appropriate direct access to the governing board of the bullion exchange and bullion clearing corporation and senior management, and (iii) control functions are proactively involved in all relevant decisions and activities. (i) Provide for three lines of defense construct where: (i) the first line of defense incorporates business units and support functions as it has the responsibility to own and manage risks associated with day-to-day operational activities, (ii) the second line of defense consists of various oversight functions i.e., regulatory, risk management, compliance teams, and (iii) the third line of defense comprises the internal audit function. (j) ensure that the roles and responsibilities of management in relation to three lines of defense are clearly specified and understood and ....
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....ed to culture at regular intervals; (iii) accountability mechanisms; and (iv) performance management mechanisms which take into account adherence to culture, conduct and behavior related dimensions. II. Code of conduct for directors, committee members and key management personnel A. Applicable to directors, committee members and key management personnel of bullion exchange and bullion clearing corporation: 1. General Responsibility Every director, committee member and key management personnel of the bullion exchange or bullion clearing corporation shall- (a) analyse and administer the bullion exchange's and bullion clearing corporation's issues with professional competence, fairness, impartiality, efficiency and effectiveness; (b) unless otherwise required by law, maintain confidentiality and not divulge or disclose any information obtained in the discharge of their duties and ensure no such information is used for personal gains; (c) maintain the highest standards of personal integrity, truthfulness, honesty and fortitude in discharge of their duties in order to inspire public confidence and not engage in acts discre....
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.... (c) ensure that the bullion exchange or bullion clearing corporation takes steps commensurate to honour the time limit stipulated by Authority for corrective action. 3. Disclosures of Beneficial Interest Every director, committee member and key management personnel shall disclose to the governing board of bullion exchange or bullion clearing corporation, upon assuming office and during their tenure in office, whenever the following arises: - (a) any fiduciary relationship of self and family members and directorship or partnership of self and family members in any trading member or clearing member (b) shareholding, in cases where the shareholding of the director or key management personnel, directly or through her family exceeds 5 per cent. in any listed company or in other entities related to the bullion markets or securities markets; (c) any other business interests. 4. Access to Information (a) There shall be specified channels through which information shall move and further there shall be audit trail of the same. Any retrieval of confidential documents or information shall be properly recorded. (b) All such information, ....
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....erest of customers and shall report forthwith any such decision to the Authority. 2. Role of the directors and committee members in the day to day functioning of the bullion exchange and bullion clearing corporation (a) The directors and committee members shall not interfere in the day-to-day functioning of the bullion exchange or bullion clearing corporation and shall limit their role to decision making on policy issues and to issues as the governing board of bullion exchange and bullion clearing corporation may decide. (b) The directors and committee members shall abstain from influencing the employees of the bullion exchange and bullion clearing corporation in conducting their day-to- day activities. (c) The directors and committee members shall not be directly involved in the function of appointment and promotion of employees unless specifically so decided by the governing board of bullion exchange and bullion clearing corporation. 3. Avoidance of Conflict of Interest (a) No director or committee member of the bullion exchange or bullion clearing corporation shall participate in any decision making or adjudication in respect of any pers....
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....tifying any issues concerning the functioning of bullion exchange or bullion clearing corporation and report the same to the Authority. Public interest directors should ensure all regulatory communication/letter from the Authority are placed before the governing board with comments/report of managing director. (f) Public interest directors shall put in place an evaluation mechanism to assess the performance of the managing director on a continuing basis in line with evaluation guidelines for public interest directors. (g) Public interest directors to ensure that appointments of managing director be held within specified timelines. The identification of key management personnel be closely scrutinized as per the laid down procedure and exceptions should be brought to the notice of the Authority. (h) Public interest directors should take proactive part in the deliberations of different committees and steer their functioning. (i) Ensure adequacy of resource allocations (both financial & human) towards regulatory compliances to be ensured. (j) Public interest directors as members of various committees (including statutory committees) shall pr....
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....isk management and customer grievance i. Risk management; ii. Member registration; iii. Compliance; iv. Inspection; v. Enforcement; vi. Member default; vii. Legal; viii. Customer protection and services. c. Vertical 3: Other functions including business development i. Sales; ii. Marketing; iii. Product development; iv. Finance. Part-D [See Regulation 26 and 27] A. Procedure for appointment 1. All directors while seeking approval shall submit to the bullion exchange and bullion clearing corporation the following details: - a) Name b) Address c) Educational qualification d) Details of employment/ Occupation, past and present e) Details of other directorships f) DIN g) Declaration regarding the fulfillment of requirements specified in these regulations. h) Declaration confirming compliance in respect of non-association with trading members or clearing members. i) Details of regulatory action taken against by any statutory authority. j) Details of activities that m....
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....ot be necessary. A minimum of two names shall be submitted to the Authority for each vacancy of public interest directors, two months before such a vacancy. 2. The bullion exchange and bullion clearing corporation shall ensure that public interest directors are selected from diverse fields of work. While deciding to propose a particular person as a public interest director, the bullion exchange and clearing corporation shall also take into account the following factors: a) Qualifications as specified in sub-regulation (14) of regulation 25. b) At least one person shall be inducted having experience and background in finance/ accounts who may preferably be inducted in the audit committee. c) Persons currently holding positions of trust and responsibility in reputed organizations or person who have retired from such positions. d) Persons who are likely to have interested positions in commercial contracts and financial affairs of bullion exchange, may preferably be excluded. 3. Public interest directors shall peruse the relevant laws, code of conduct, etc. and submit an undertaking to the bullion exchange or bullion clearing corpor....