Aurex Bullion Exchange IFSC Ltd ('Aurex'), a recognised bullion exchange at GIFT City IFSC, was incorporated as an independent entity and is neither a subsidiary nor a joint venture of any Market Infrastructure Instituti

CS Professional · IFSCA - Regulations, Listing and Compliances · PYQS · June 2026
Aurex Bullion Exchange IFSC Ltd ('Aurex'), a recognised bullion exchange at GIFT City IFSC, was incorporated as an independent entity and is neither a subsidiary nor a joint venture of any Market Infrastructure Institution. During a Board meeting, deliberations arose regarding the necessity of appointing a Chief Legal Officer, with cost considerations being a significant factor weighing on the Board's thinking. Venkat, a non-executive director, firmly asserted that Aurex had no regulatory obligation to appoint a Chief Legal Officer and that foregoing such an appointment was both legally defensible and commercially justified. Subsequently, Aurex submitted proposed amendments to its bye-laws directly to IFSCA without any internal legal review, prompting IFSCA to raise formal concerns about the adequacy of Aurex's legal governance framework. In light of Aurex's structural independence and IFSCA's concerns, comment if Venkat's contention is correct.

Answer & Explanation:

As per Regulation 33 of IFSCA (Bullion Market) Regulations, 2025, a bullion exchange or bullion clearing corporation, which is not a subsidiary of a market infrastructure institution (MII) or a joint venture of market infrastructure institutions, shall be required to appoint a Chief Legal Officer. Responsibilities of the Chief Legal Officer The Chief Legal Officer is responsible for managing all legal risks and must carry out tasks such as: Drafting and vetting of the bye-laws, and checking any amendments before submission of documents to the Authority for approval. Vetting of legal documents related to cross-border arrangements proposed to be entered into by a bullion exchange or bullion clearing corporation. Performing such other functions specified by the governing board of a bullion exchange or bullion clearing corporation or the IFSCA. In the given case, Venkat's contention is legally incorrect as per IFSCA (Bullion Market) Regulations, 2025. Since Aurex Bullion Exchange IFSC Ltd. is an independent entity and is neither a subsidiary nor a joint venture of any MII, the appointment of a Chief Legal Officer is a mandatory regulatory requirement. Moreover, the failure to have bye-laws vetted by a Chief Legal Officer before submission to IFSCA prompting IFSCA to raise formal concerns and questioned the legal governance framework of Aurex Bullion Exchange.

Topics: IFSC Regulations

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