Ahmedabad: GIFT City is set to attract global and Indian manufacturing firms that currently run commodity trading operations from overseas hubs such as Singapore and Hong Kong, following a major regulatory overhaul by the Centre. Commodity trading has now been notified as a financial service under the International Financial Services Centres Authority (IFSCA) Act, 2019.Under the new framework, units operating in International Financial Services Centre (IFSC) can undertake commodity trading contracts with counterparties. The definition covers both cross-border shipments between countries and trading activities conducted within a foreign country. Such shipments may pass through Indian ports or bypass them altogether.The notification defines commodities as goods that can be delivered and traded. However, it excludes actionable claims, money, currency, and securities. Species listed under the Convention on International Trade in Endangered Species (CITES) and items covered under the Centre’s SCOMET framework are also outside its scope.Experts said commodity trading activities will continue to remain subject to applicable Indian laws.“This move will broaden the financial services ecosystem at GIFT IFSC and create an enabling regulatory framework for international commodity trading through IFSC entities. It is expected to open up opportunities for greater participation by global market players,” a source familiar with the development said.
