India has now officially called commodity trading contracts "financial products" under the IFSCA Act of 2019.
This move puts GIFT City on the map as a global spot for commodity trading, with the IFSCA stepping in to oversee things.
The goal? Make India stronger in international trade and help protect against wild price swings worldwide.
IFSCA approves GCTP at GIFT City
Until now, regulators like RBI and SEBI handled these contracts, but with IFSCA in charge (and approved establishing a Global Commodity Trading Platform (GCTP) at GIFT City), India hopes to rely less on places like Singapore or Dubai.
An expert committee constituted by IFSCA in 2024 had noted that India, as one of the world's largest importers of crude oil, metals, and other commodities, remains vulnerable to global price volatility and supply-chain disruptions.