GIFT City Commodity Trading Rules: What Investors Need to Know
IFSCA is proposing regulatory changes to make GIFT City a hub for international commodity trading. The proposals would classify commodity derivatives as financial products under the IFSCA Act and bring exchange-traded and OTC commodity derivatives under a single framework.
What changed in GIFT City commodity trading
IFSCA submitted proposals in August 2026 seeking government approval to designate commodity derivatives as financial products.
GIFT IFSC has facilitated imports of 110 tonnes of gold and 1,200 tonnes of silver under its international trade exchange framework. The introduction of deliverable non-bullion derivative contracts for foreign participants is also listed as a trigger factor.
Who it affects
Foreign institutional investors, global trading firms and commodity-market participants could gain access to a more unified framework if the proposals are approved. Increased foreign investor access is anticipated to deepen liquidity and enhance onshore price discovery.
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Market infrastructure providers stand well-positioned to capture higher institutional participation and international trading volume as GIFT IFSC expands its operational scope into global commodity trading. Potential regulatory divergence between domestic onshore rules and IFSC international norms remains a risk.
The source is available at Sahi Markets’ report on IFSCA’s GIFT City commodities trading proposals.
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