The International Financial Services Centres Authority (IFSCA) has significantly updated its consolidated circular on gold and silver imports through the India International Bullion Exchange (IIBX). This latest revision, IFSCA-PMTS/10/2023-Precious Metals/2026/6, issued on 22 September 2026, primarily eases the eligibility criteria for entities seeking to be notified as ‘Qualified Jewellers’.
Practitioners must immediately review the expanded pathways to Qualified Jeweller status, particularly the new relaxations for entities holding specific DGFT authorisations, and ensure ongoing compliance with net worth and turnover requirements to maintain their import privileges.
What Changed: The 30-Second Answer
The IFSCA, via its Circular IFSCA-PMTS/10/2023-Precious Metals/2026/6 dated 22 September 2026, has consolidated and updated rules for importing gold or silver through the IIBX. The key change is a relaxation of eligibility criteria for ‘Qualified Jewellers’, now including entities with specific DGFT authorisations, in addition to those with valid Advance Authorisations or GJEPC RCMCs. This IFSCA Circular 2026 also reiterates continuous compliance obligations for notified entities.
Who Does This IFSCA Circular 2026 Apply To?
This consolidated circular targets a broad spectrum of entities involved in the bullion market within the IFSC. Specifically, it applies to:
- Bullion Exchanges in the IFSC
- Bullion Clearing Corporations in the IFSC
- Bullion Depositories in the IFSC
- Bullion intermediaries in the IFSC
- Vault Managers in the IFSC
- All market participants on the Bullion Exchange in the IFSC
- Entities seeking to be notified as ‘Qualified Jewellers’ for importing gold or silver through IIBX.
- Valid India-UAE CEPA Tariff Rate Quota (TRQ) holders importing UAE Good Delivery (UAEGD) Gold.
The circular explicitly clarifies that entities already notified by IFSCA under previous circulars (dated 19 January 2022, 5 August 2022, and 11 December 2023) for specific ITC(HS) codes for gold and silver imports are now deemed notified for a broader range of related codes. This streamlines compliance for existing players and expands their operational scope without re-application.
What Are the Relaxed Eligibility Criteria for Qualified Jewellers?
The IFSCA has notably eased the pathways to becoming a ‘Qualified Jeweller’ through this IFSCA Circular 2026. Previously, entities had to meet stringent turnover and net worth requirements. Now, Clause 3A introduces additional routes:
- Entities holding a valid Advance Authorisation issued by the Directorate General of Foreign Trade (DGFT) are eligible.
- Entities holding a valid Registration-cum-Membership Certificate (RCMC) issued by The Gem & Jewellery Export Promotion Council (GJEPC) are eligible.
- Crucially, entities holding Authorisation by the DGFT for import of items under specific relevant ITC (HS) codes are now also eligible. This is a direct relaxation based on representations and consultations, as stated in paragraph 2 of the circular.
For entities that do not fall under these new relaxed criteria, the original conditions still apply. These include:
- Engagement in the business of goods falling under ITC(HS) codes 7106, 7108, 7113, 7114, and 7118.
- Filing due GST returns up to the preceding month/quarter.
- A certificate (attested by a practicing chartered accountant, cost accountant, or company secretary) confirming either:
- At least 60% of annual turnover in each of the last three financial years and the current financial year until application date, or
- At least 90% of annual turnover in the previous entire financial year and the current financial year until application date, is from dealing in specified ITC(HS) code goods.
- A minimum net worth of INR 15 crore as per the latest financial statements, for entities other than SEZ units.
Special provisions exist for SEZ units holding a valid Letter of Approval with export of jewellery as an authorised operation. They must demonstrate at least 35% annual turnover in specified ITC(HS) codes for the preceding three financial years and the current year, and an annual export turnover of at least INR 5 crore through goods under ITC(HS) Code 7113 during each of the preceding three financial years.
What Are the Import Scopes and Restrictions?
Qualified Jewellers, once notified, are permitted to import gold under ITC(HS) Codes 71081210, 71081290, and 71189000, and silver under ITC(HS) Codes 71069110, 71069120, and 71069290 through the IIBX. An important restriction to note, as per DGFT Notification No. 17/2026-27 dated 16 May 2026, is that the import of silver bars under ITC(HS) Code 71069221 is restricted. However, SEZ units with a valid Letter of Approval and export of jewellery as an authorised operation are exempt from the Qualified Jeweller requirement for importing silver bars under this specific code.
Furthermore, DGFT Notification No. 19/2026-27 dated 2 June 2026 mandates that import of silver under ITC(HS) Codes 71069110 and 71069120 is permitted only against a valid Import Authorisation issued by the DGFT. This adds another layer of regulatory scrutiny for silver imports, aligning with broader trade policies. For entities operating in the IFSC, staying abreast of such DGFT notifications is as critical as adhering to direct IFSCA directives.
What are the Continuous Compliance Requirements?
Notification as a Qualified Jeweller is not a one-time event; it demands continuous adherence to specified criteria. The IFSCA Circular 2026 mandates that a Qualified Jeweller must:
- Maintain the minimum applicable net worth specified under Clause 3(d) at all times. IIBX will review this on a half-yearly basis.
- If an SEZ unit, maintain an annual export turnover of at least INR 5 crore in goods falling under ITC (HS) Code 7113 during each financial year.
- Satisfy all other eligibility criteria mentioned in Clause 3 on a continual basis.
Failure to satisfy any applicable eligibility criteria on an ongoing basis will lead to the suspension of the Qualified Jeweller’s participation from transacting on IIBX until the criteria are fulfilled again. The notification remains valid unless de-notified by application or if participation is suspended for a continuous period of six months.
What About India-UAE CEPA TRQ Holders?
The circular also details the process for valid India-UAE CEPA TRQ holders to import UAE Good Delivery (UAEGD) Gold through IIBX. These entities must apply to IFSCA to be notified as ‘valid India-UAE CEPA TRQ holders’. Once notified, they can participate on IIBX through Bullion Trading Members to buy UAEGD gold, subject to quota and other terms. The IFSCA notification for TRQ holders remains valid for subsequent financial years, provided they are continually allotted TRQ licences/authorisations by the DGFT and submit copies of newly issued licences to IIBX. This is a crucial detail for ensuring uninterrupted operations for TRQ holders, and parallels the need for ongoing vigilance seen in other financial sectors, such as SEBI’s consolidated guidelines for AIFs.
The Algoy Perspective
While the IFSCA’s intention to consolidate and simplify is clear, the practical challenge for many entities will lie in demonstrating “fit and proper person” status on an ongoing basis, particularly for directors, managing partners, and significant shareholders. Clause 7(j) outlines extensive disqualification criteria, ranging from economic offences and regulatory debarments to insolvency and being declared a wilful defaulter or fugitive economic offender. The IIBX is tasked with ensuring continuous compliance with these criteria, not just at the application stage.
This means that even if a Qualified Jeweller meets all financial and turnover metrics, any adverse action against its key personnel, or even against the entity itself, could lead to suspension or de-notification. Compliance officers must establish robust internal monitoring systems, extending beyond financial audits to include regular checks on the integrity and regulatory standing of all relevant individuals and the entity. A proactive approach to corporate governance and legal due diligence will be paramount to avoid unexpected disruptions to import activities.
Frequently Asked Questions
What is the primary purpose of this IFSCA Circular 2026?
The primary purpose of this IFSCA Circular 2026, issued on 22 September 2026, is to consolidate and update the instructions regarding the import of gold or silver by eligible entities, including Qualified Jewellers and valid India-UAE CEPA TRQ holders, through the India International Bullion Exchange (IIBX). It also relaxes the eligibility criteria for becoming a Qualified Jeweller.
What specific ITC(HS) codes are covered for gold and silver imports by Qualified Jewellers?
Qualified Jewellers are permitted to import gold under ITC(HS) Codes 71081210, 71081290, and 71189000, and silver under ITC(HS) Codes 71069110, 71069120, and 71069290 through the IIBX. Notably, import of silver bars under ITC(HS) Code 71069221 is restricted, with an exception for SEZ units, and silver imports under 71069110 and 71069120 require a valid DGFT Import Authorisation.
Can an existing Qualified Jeweller automatically benefit from the new relaxed eligibility criteria?
Yes, the circular states that Qualified Jeweller(s) already notified by IFSCA under previous circulars (dated 19 January 2022, 5 August 2022, and 11 December 2023) for specific gold and silver ITC(HS) codes are “deemed to have been notified” for the purpose of import under the newly specified broader range of ITC(HS) codes (71081210, 71081290, 71069120, 71069221, and 71069229). This provides an automatic expansion of scope for existing notified entities.
What happens if a Qualified Jeweller fails to maintain the continuous compliance requirements?
If a notified Qualified Jeweller fails to satisfy any of the applicable eligibility criteria on an ongoing basis, the IIBX “shall suspend the participation of such Qualified Jeweller from transacting on IIBX until such criteria are fulfilled again.” The notification itself may be de-notified if participation remains suspended for a continuous period of 6 months.
Sources and Further Reading
- Updated Consolidated Circular – Import of Gold or Silver through IIBX
- International Financial Services Centres Authority (IFSCA)
- Search and track this circular on RegChat, Algoy’s regulatory chatbot
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