Commodity trading can now be done from GIFT IFSC as a regulated financial activity. On Friday, 13 November 2026, the Central Government notified 'commodity trading contract' as a financial product and 'commodity trading' as a financial service under the International Financial Services Centres Authority Act, 2019 — through two separate Gazette notifications, S.O. 6196(E) and S.O. 6195(E), both issued by the Ministry of Finance (Department of Economic Affairs) under F. No. 3/15/2022-EM. Both notifications came into force on the date of their publication in the Official Gazette, 13 November 2026. The notifications are the legal foundation for the Global Commodity Trading Platform (GCTP) that the IFSCA board approved for GIFT City earlier in 2026 — but they are the foundation only: the detailed rules on which commodities can be traded, and on what terms, are still to be issued by IFSCA.
Quick Answer: On 13 November 2026, the Government notified 'commodity trading contract' as a financial product (S.O. 6196(E), under section 3(1)(d)(vi)) and 'commodity trading' as a financial service (S.O. 6195(E), under section 3(1)(e)(xiv)) under the IFSCA Act, 2019. Units in an International Financial Services Centre can now trade commodities under this framework, in force from 13 November 2026.
Two notifications, not one
Most early reports mentioned only one of the two notifications. There are two, and they do different jobs:
- S.O. 6196(E) — the product. The Central Government notifies 'commodity trading contract' as a financial product under clause (d) of sub-section (1) of section 3 of the IFSCA Act, 2019 — specifically section 3(1)(d)(vi). Gazette ID CG-DL-E-13112026-277891.
- S.O. 6195(E) — the service. The Central Government notifies 'commodity trading' as a financial service under clause (e) of sub-section (1) of section 3 of the IFSCA Act, 2019 — specifically section 3(1)(e)(xiv). Gazette ID CG-DL-E-13112026-277890.
Both notifications are dated 13 November 2026, carry the same file number (F. No. 3/15/2022-EM), and are signed by Alok Tiwari, Joint Secretary, Ministry of Finance (Department of Economic Affairs). Each states that it "shall come into force on the date of its publication in the Official Gazette" — so both are in force from 13 November 2026. There is no deferred commencement date and no transition window in either notification.
The definitions, word for word
The two notifications use an identical definition of "commodity", and each then defines its own subject. The definitions matter because they draw the boundary of what IFSCA can now regulate — and what it cannot.
"Commodity" (identical in both notifications): goods of every description, which are capable of being delivered and traded, but excludes (i) actionable claims, money, currency, securities; (ii) any species or specimens listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora; and (iii) any items specified under Special Chemicals, Organisms, Materials, Equipment and Technologies by the Central Government.
"Commodity trading contract" (S.O. 6196(E)): a contract under which a unit of an International Financial Services Centre trades a commodity with another party.
"Commodity trading" (S.O. 6195(E)): trading of a commodity under a commodity trading contract by a unit of an International Financial Services Centre, involving its shipment from one country to another, or within a foreign country, with or without touching Indian ports. The notification adds: "The activity of commodity trading shall be subject to the provisions of the applicable laws in force in India."
Three features of these definitions deserve attention. First, the product is the contract, not the commodity itself — IFSCA regulates the financial activity around the trade, not the physical goods. Second, the trading definition expressly covers shipment between two foreign countries, and shipment within a foreign country, with or without touching Indian ports — that is merchanting trade, the business Indian trading houses currently run out of Singapore, Dubai, Hong Kong and Switzerland. Third, the exclusions are deliberately wide: money, currency and securities are out (they are already financial products in their own right), endangered species are out, and anything on the SCOMET list is out.
Key changes
- Commodity trading contracts are now financial products under the IFSCA Act. S.O. 6196(E) brings them inside section 3(1)(d), which is the gateway for IFSCA to frame regulations, license participants and supervise the activity.
- Commodity trading is now a financial service under the IFSCA Act. S.O. 6195(E) brings the activity itself inside section 3(1)(e), so an IFSC unit can carry it on as a regulated financial service.
- The scope covers cross-border shipment that never touches India. Trading involving shipment from one country to another, or within a foreign country, with or without touching Indian ports, is inside the definition.
- The activity stays subject to Indian law. S.O. 6195(E) states expressly that commodity trading shall be subject to the provisions of the applicable laws in force in India — the notification does not create a law-free zone.
- Both notifications are in force from 13 November 2026. Each comes into force on the date of its publication in the Official Gazette; there is no separate commencement date.
In plain language: until 12 November 2026, commodity trading was not a recognised financial activity under the IFSCA Act, so IFSCA could not license it or write rules for it. From 13 November 2026, it is — both the contract (as a product) and the trading itself (as a service). GIFT IFSC can now host the business that Indian trading houses currently run from overseas hubs. But the rulebook for how trading will actually work — which commodities, what licences, what conduct rules — has not been issued yet.
Old vs new: what has actually changed
The comparison below is drawn from the two Gazette notifications of 13 November 2026 and the position IFSCA itself described before they were issued.
Why the Government moved now
The notifications are the missing legal step for a plan that has been public for months. Earlier in 2026, the IFSCA board approved the establishment of a Global Commodity Trading Platform (GCTP) at GIFT City, intended to provide an integrated ecosystem for global commodity trading, merchanting trade, trade finance and risk-management services. The board's approval, reported in June 2026, was expressly subject to approvals from the Centre — including notification of commodities as a financial product under the regulatory framework — and IFSCA was to draft and notify regulations governing the platform after that. The 13 November notifications supply the first of those approvals.
The policy logic behind the platform was set out by an expert committee constituted by IFSCA in 2024, which 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, and recommended a dedicated framework to facilitate commodity trading and related services from GIFT IFSC. The stated aim is to bring back to India commodity-trading business that Indian firms currently conduct through overseas centres such as Singapore, Dubai, Hong Kong and Switzerland.
IFSCA Executive Director Dipesh Shah welcomed the notification as an important step in broadening the financial-services ecosystem at GIFT IFSC, saying it creates an enabling regulatory framework for international commodity trading through IFSC entities. GIFT City Managing Director and Group CEO Sanjay Kaul said it lays the foundation for bringing international commodity trading and the financial services that support it — financing, hedging, insurance and treasury management — into a connected ecosystem at GIFT City.
Who is affected
- IFSC units at GIFT City — the notifications apply to units of an International Financial Services Centre. GIFT IFSC is currently the only operational IFSC in India, so in practice this means GIFT City units.
- Indian trading houses with overseas desks — firms that trade crude oil, metals, agricultural products and other commodities from Singapore, Dubai or Switzerland now have a notified onshore route. Whether they move depends on the regulations IFSCA issues next.
- Global commodity traders and manufacturers — the framework is aimed at attracting large global and Indian companies that have set up commodity trading in overseas hubs.
- Banks, insurers and trade financiers at GIFT IFSC — trade finance, hedging, insurance and treasury management around commodity trades are the supporting services the platform is meant to connect.
- Advisers and compliance teams — law firms, company secretaries and consultants advising IFSC units will need to track the IFSCA regulations that follow, because the notifications alone do not say who can trade what, or on what licence.
What the notifications do NOT do yet
This is the part most early coverage skipped, and it matters more than the headlines. The notifications notify a product and a service. They do not:
- List eligible commodities. No list of commodities that may be traded has been issued. Reports after the notification confirm that detailed rules covering eligible commodities and trading activities are yet to be issued.
- Set out licensing or registration conditions. There is no application process, no eligibility criteria for trading units, and no conduct framework in these two notifications.
- Launch the Global Commodity Trading Platform. The GCTP was approved by the IFSCA board earlier in 2026; the platform itself still has to be operationalised, and IFSCA must draft and notify regulations governing it.
- Change the physical side of the trade. IFSCA regulates only the financial aspects of commodity trading. Warehousing, logistics and other physical infrastructure continue under the existing Free Trade Warehousing Zone and SEZ framework.
- Override other Indian laws. S.O. 6195(E) states expressly that commodity trading shall be subject to the provisions of the applicable laws in force in India.
Any firm planning around this development should treat 13 November 2026 as the day the door opened — not the day trading began. The next document to watch is IFSCA's regulations for the platform.
What to do next
- Read the two notifications, not just the headlines. Most reports mention only S.O. 6196(E) (the product). S.O. 6195(E) (the service) is the one that defines the activity, including the shipment limb and the "subject to applicable laws" condition. Both are linked in the sources below.
- Map the exclusions before structuring anything. If the underlying goods are money, currency, securities, actionable claims, CITES-listed species or SCOMET items, they are outside the definition of "commodity" altogether.
- Do not apply for a licence yet. There is no application process in these notifications. Wait for IFSCA's regulations governing the platform, and watch for a consultation paper — IFSCA has used public consultation before notifying major frameworks.
- IFSC units: brief the board on the direction of travel. The notifications signal that commodity trading, merchanting trade, trade finance and risk management will be licensable activities at GIFT IFSC. Firms with commodity exposure should assess whether an IFSC unit fits their trading structure once the regulations arrive.
- Advisers: diarise the regulations, not the notifications. The operative detail — eligible commodities, capital and conduct requirements, reporting — will come in IFSCA regulations. The notifications are the trigger to start watching, not the final rulebook.
Frequently asked questions
Is commodity trading now allowed at GIFT IFSC?
The legal basis now exists: 'commodity trading contract' is a notified financial product and 'commodity trading' a notified financial service under the IFSCA Act, 2019, in force from 13 November 2026. But the detailed regulations — eligible commodities, licensing and conduct rules — have not been issued yet, so trading cannot begin on the notifications alone.
What is the difference between S.O. 6195(E) and S.O. 6196(E)?
S.O. 6196(E) notifies 'commodity trading contract' as a financial product under section 3(1)(d)(vi) of the IFSCA Act, 2019. S.O. 6195(E) notifies 'commodity trading' as a financial service under section 3(1)(e)(xiv). One covers the contract; the other covers the activity of trading under such a contract.
Does the framework cover trades that never touch India?
Yes. The definition of "commodity trading" in S.O. 6195(E) expressly includes trading involving shipment from one country to another, or within a foreign country, with or without touching Indian ports. That is merchanting trade, and it is inside the notified service.
Which commodities are covered?
The notifications define "commodity" broadly — goods of every description capable of being delivered and traded — but exclude actionable claims, money, currency, securities, CITES-listed species and specimens, and SCOMET items specified by the Central Government. The list of commodities that may actually be traded will come in IFSCA's regulations, which are still awaited.
When did the notifications come into force?
Both came into force on the date of their publication in the Official Gazette, 13 November 2026. Each notification states this expressly; there is no deferred commencement date.
Does this change anything for bullion trading on IIBX?
No. Bullion trading on the India International Bullion Exchange is governed by the IFSCA (Bullion Market) Regulations, 2025 and IFSCA's bullion circulars, including the 12 November 2026 circular prescribing the format for reporting non-compliance. These commodity-trading notifications are a separate framework for commodities generally, and the detailed rules for it are still to come.
Sources
- Primary source: S.O. 6196(E), dated 13 November 2026, Ministry of Finance (Department of Economic Affairs) — 'commodity trading contract' notified as a financial product under section 3(1)(d)(vi) of the IFSCA Act, 2019 (Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii); Gazette ID CG-DL-E-13112026-277891). Official e-Gazette PDF: https://egazette.gov.in/WriteReadData/2026/277891.pdf
- Primary source: S.O. 6195(E), dated 13 November 2026, Ministry of Finance (Department of Economic Affairs) — 'commodity trading' notified as a financial service under section 3(1)(e)(xiv) of the IFSCA Act, 2019 (Gazette ID CG-DL-E-13112026-277890). Official e-Gazette PDF: https://egazette.gov.in/WriteReadData/2026/277890.pdf
- Related reading on CorpLawUpdates: IFSCA Bullion Market Non-Compliance Reporting Format 12 November 2026 and IFSCA IIIO Certificate of Registration Continued Validity 12 November 2026; all IFSCA updates at corplawupdates.in/category/ifsca.
