Every bullion clearing corporation must maintain an orderly winding-down framework for critical operations and services in voluntary and involuntary scenarios. The framework must provide for timely settlement, cessation or transfer of positions and for transfer of members' collateral, deposits, margins and other assets to a bullion clearing corporation taking over operations. Related matters necessary for an orderly transition must also be addressed.

A bullion clearing corporation has priority to recover dues arising from the clearing and settlement functions of its bullion clearing members. Such recovery may be made from the members' collaterals, deposits and assets, with the corporation's claim prevailing over any other liability of or claim against the members.

Settlement and netting for bullion exchange and bullion clearing corporation transactions follow the netting or grossing procedures prescribed in their respective bye-laws. Payments and settlements are final, irrevocable and binding once the money, securities or other transactions payable on a gross or net settlement have been determined, irrespective of actual payment. The right to appropriate contributed collateral, deposits or margins for settlement or other obligations has priority over other liabilities or claims against the contributor.

Bullion clearing corporations must comply with the International Financial Services Centres Authority (Bullion Market) Regulations, 2025, the agreement entered into with the relevant bullion exchange, and any additional conditions imposed by the Authority. The compliance obligations operate cumulatively.

Regulation 12 requires the bullion exchange to protect consumer interests, regulate bullion contracts, and promote transparent and orderly bullion market development. Its functions include regulating trading members and intermediaries, enforcing good delivery standards, preventing fraudulent and unfair trade practices, and supporting consumer education and intermediary training. The exchange may obtain information and conduct inspections, inquiries and audits, levy fees and charges, set standards for bullion quality, quantity and verification, and establish vaulting and transport standards in consultation with the bullion depository.

A bullion exchange must engage a bullion clearing corporation through a written agreement setting out rights, obligations, conditions for admission of securities to clearing and settlement, risk management measures, charges, and related matters. Its arbitration mechanism must cover disputes or claims arising from clearing and settlement of trades executed on the exchange.

Clearing and settlement of bullion exchange trades must be conducted through the services of a bullion clearing corporation from the commencement of the bullion exchange's operations. This establishes mandatory use of a designated clearing mechanism for all trades executed on a bullion exchange.

Bullion exchanges and bullion clearing corporations must comply with the Code of Conduct prescribed in Part A of Schedule I under the International Financial Services Centres Authority (Bullion Market) Regulations, 2025. This compliance obligation governs their conduct within the recognised bullion market framework.

Withdrawal of recognition of a bullion exchange or bullion clearing corporation may be undertaken by the Authority only after affording the recognised entity an opportunity of being heard. The process must follow the manner prescribed under the Securities Contracts (Regulation) Act, 1956.

Renewal of recognition for bullion exchanges and bullion clearing corporations is subject to the provisions applicable to the original grant of recognition. Recognised entities must continuously satisfy the applicable conditions prescribed for their respective category in connection with renewal.

Recognition of a bullion exchange follows the period prescribed under rule 6 of the applicable rules. Recognition of a bullion clearing corporation may be permanent or, if granted for a specified term, must be for not less than one year as determined by the Authority.

Recognition of a bullion exchange or bullion clearing corporation may be granted after the Authority considers the application, verifies compliance with prescribed conditions, and is satisfied of the applicant's eligibility. Recognition may be subject to additional conditions considered appropriate. Refusal of recognition requires that the applicant be given an opportunity of being heard in accordance with the prescribed procedure.

Recognition requires a company limited by shares, a demutualised structure, fit-and-proper directors and shareholders, compliant ownership and governance, prescribed net worth, and adequate financial, functional and infrastructure capability. Bullion exchanges require orderly trading, real-time surveillance, member connectivity, consumer redressal, information dissemination, resilient systems and qualified personnel. Bullion clearing corporations require timely clearing and settlement infrastructure, risk management, netting, novation, settlement guarantees, connectivity, dispute resolution and agreements with a bullion depository and bullion exchange. In-principle approval is valid for one year and may be extended upon sufficient cause.

Recognition as a bullion exchange or bullion clearing corporation requires an application to the Authority in the specified form and manner with the applicable fee. The application must include specified particulars and governing instruments for bullion contracts, including constitutional documents and bye-laws. It must address the governing board's constitution and management powers, office bearers' duties, membership classes and qualifications, and procedures for exclusion, suspension, expulsion and re-admission of members. Additional matters specified by the Authority must also be included.

Regulation 2 defines the institutional, participant, governance and operational terms for the bullion market framework, including bullion exchanges, clearing corporations, depositories, vault managers, bullion contracts and bullion depository receipts. It defines associate and control, identifies key management and public-interest roles, and sets concepts of good delivery, netting, novation and net worth. Foreign jurisdictions must meet securities-regulatory cooperation requirements and avoid specified Financial Action Task Force deficiencies. Undefined expressions take their meanings from applicable parent legislation, company law and related subordinate law.

Recognition of bullion exchanges and bullion clearing corporations, together with registration of bullion depositories and vault managers, forms the regulatory framework for the bullion market in International Financial Services Centres. The framework covers matters connected with or incidental to these recognition and registration mechanisms and takes effect from publication in the Official Gazette.

Delhi GST/SGST deposited on admission services for exhibition of the film "83" may be reimbursed where multiplexes and cinema halls do not charge SGST from viewers, retain prevailing admission fees and seating capacity, and mark tickets to show that SGST has not been charged. Operators must deposit the tax through separate challans and apply to the Proper Officer in the prescribed form with challan copies and details of admissions and tax deposited. Reimbursement follows verification, is subject to fund availability, and excludes tax already collected from viewers.

Sale proceeds from shares cannot be treated as unexplained cash credit merely on the basis of a general penny-stock investigation report where the taxpayer substantiates acquisition, holding and sale through allotment records, banking payments, demat statements, contract notes, broker ledgers and securities transaction tax evidence. Transactions conducted through a registered broker and stock exchange require contrary material specifically linking the taxpayer to accommodation entries, cash payments or price manipulation. Generic material concerning alleged entry operators does not displace the evidentiary burden already met. On these facts, the addition under Section 68 was directed to be deleted.

Insolvency Professionals must examine potential misuse of insolvency proceedings for purposes unrelated to resolution or liquidation. Warning indicators include creditor dominance following a recent debt assignment, connected debtors with overlapping creditor committees, inadequate competition in resolution, unsupported disproportionate creditor realisations, fraud-related regulatory or enforcement links, and unjustified related-party transactions. Indicators are not conclusive and require a holistic assessment. Where reasonable grounds indicate a fraudulent or malicious purpose, the Insolvency Professional must apply to the Adjudicating Authority with the relevant indicators, material and reasons.

Physical verification of an applicant's place of business is compulsory before grant of registration under the DGST Act, 2017, to address non-existing and potentially evasive registrations. Rule 25 permits verification by the Proper Officer and requires the report, supporting documents and photographs to be uploaded in Form GST REG-30 within 15 working days after verification. Pre-registration verification must be completed within seven days of receiving the application, without delaying registration processing.