India’s first International Bullion Exchange | Fusion - WeRIndia

India’s first International Bullion Exchange

India’s first International Bullion Exchange

Prime Minister Narendra Modi launched India’s first International Bullion Exchange (IIBX) in Gandhinagar, Gujarat, yesterday.

Here are the highlights of IIBX:

  • IIBX offers more competitive services than any other Indian exchange. It claims to offer more services than some global exchanges like Dubai, Singapore, London, and New York. It offers wide-ranging products and technology services. The International Financial Services Centres Authority (IFSCA) regulates the activities of IIBX.
  • Ashok Gautam is the Managing Director and Chief Executive Officer of IIBX.
  • IIBX is promoted by five market institutional investors. These include CSDL, NSDL, NSE, India INX, and MCX.
  • It facilitates imports of gold. Currently, only a few nominated banks and agencies are allowed to import the gold directly. But, IIBX allows all qualified jewellers to import gold directly. Thus it is anticipated to attract many dealers, jewellers, refineries etc.
  • The contracts are listed, traded and settled on the exchange platform. Gold and silver can be traded in US Dollars.
  • Any jeweller with a net worth of ₹25 crores and more are allowed to join the portal. Besides, non-resident individuals (NRIs), public and private firms can also become members of the exchange.
  • In addition to that, foreign bullion suppliers are also eligible to become its members. But they should follow OECD guidelines.
  • All qualified jewellers will be allowed to remit in dollars in advance. RBI will approve them if they meet specified criteria.
  • As many as 64 big jewellers have already registered on the portal. Many others also applied to join the portal. They are yet to be approved. All local trades will be exempt from local duties.
  • IIBX standardises the prices of gold in India so that all small bullion dealers and gold jewellers can trade easily.
  • Gold 1 kg with 995 purity and gold 100 grams with 999 purity will be traded initially. The settlement period is +0. That is 100 per cent upfront margin has to be paid. Later, the settlement period is likely to be extended to T+2 days.

Image by PublicDomainPictures from Pixabay (Free for commercial use)

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