Commodity trading notified as a financial service, and commodity trading contract as a financial product, in IFSC
TaxByKK · Compliance News · taxbykk.com13 Nov 2026
In short
The Ministry of Finance (Department of Economic Affairs) has issued two notifications dated 13 November 2026 under the International Financial Services Centres Authority Act, 2019. S.O. 6195(E) notifies 'commodity trading' as a financial service and S.O. 6196(E) notifies a 'commodity trading contract' as a financial product. Both come into force on publication in the Gazette. They cover trading of goods by a unit of an International Financial Services Centre, with the goods moving from one country to another, or within a foreign country, with or without touching Indian ports.
- Authority
- Ministry of Finance, Department of Economic Affairs
- Notifications
- S.O. 6195(E) (financial service) and S.O. 6196(E) (financial product), both dated 13 November 2026
- Gazette
- The Gazette of India, Extraordinary, Part II Section 3(ii), 13 November 2026
- Made under
- Section 3(1)(e)(xiv) and Section 3(1)(d)(vi) of the IFSCA Act, 2019
- Effective from
- Date of publication in the Official Gazette
- Applies to
- Units of an International Financial Services Centre
- File reference (S.O. 6196)
- F. No. 3/15/2022-EM
What changed
| Item | Before | Now |
|---|---|---|
| Commodity trading (S.O. 6195) | - | Notified as a financial service: trading of a commodity under a commodity trading contract by an IFSC unit, involving shipment from one country to another or within a foreign country, with or without touching Indian ports |
| Commodity trading contract (S.O. 6196) | - | Notified as a financial product: a contract under which an IFSC unit trades a commodity with another party |
| Meaning of commodity | - | Goods of every description capable of being delivered and traded, but not actionable claims, money, currency or securities; not species listed under CITES; not items under the Special Chemicals, Organisms, Materials, Equipment and Technologies list |
| Other Indian laws | - | S.O. 6195 says commodity trading remains subject to the provisions of applicable laws in force in India |
The notifications only define the activity and the product. They do not set licence conditions, capital norms or reporting duties, which IFSCA would issue separately; the document does not say when IFSCA will do so.
Who it applies to
- Entities planning or running commodity trading units in GIFT City and other IFSCs
- Lawyers, CAs and CSs advising on IFSC set-ups
- Banks and trade finance providers dealing with such units
What to do
- Check IFSCA's website for the authorisation framework and conditions for commodity trading units.
- Review whether existing IFSC trading arrangements fall within the new definitions.
- Note that other Indian laws continue to apply.
Reference
Ministry of Finance, Department of Economic Affairs, Notifications S.O. 6195(E) and S.O. 6196(E) dated 13 November 2026, Gazette of India, Extraordinary, Part II Section 3(ii).
Issued by IFSCA (ifsca.gov.in)
Read the official PDF: S.O. 6195(E) Read the official PDF: S.O. 6196(E)Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What did the Centre notify?
Commodity trading as a financial service and a commodity trading contract as a financial product under the IFSCA Act, 2019.
From when?
From the date of publication in the Gazette, 13 November 2026.
Does the notification set licence conditions?
No. It only defines the activity and the product.