Prime Minister Narendra Modi has launched the ‘India International Bullion Exchange (IIBX)’, at the Gujarat International Finance Tec-City (GIFT City) near Gandhinagar, Gujarat. IIBX is India’s first international bullion exchange. The exchange, which was announced in Budget 2020, will sell physical gold and silver. The exchange will be open for jewellers with a net worth of Rs 25 crore and above to participate.
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International Bullion Exchange (IIBX):
- This will allow qualified jewellers to directly import gold through IIBX.
- The International Financial Services Centres Authority (IFSCA) is the regulator of IIBX.
- IIBX is promoted by five market institutional investors i.e., CDSL, India INX, NSDL, NSE and MCX.
- This exchange will bring transparency to the price-setting mechanism; provide standardisation to the financialisation of the bullion in India; and work as a standard-setting tool for the quality of the bullion.
- NRIs and institutes will also be eligible to participate in the exchange after registering with the International Financial Services Centre Association (IFSCA).
- In the early stage, gold 1 kg with 995 purity and gold 100 grams with 999 purity will be traded with a settlement period of T+0. Further, the exchange is expected to extend the settlement period to T+2 days.
Who will head the IIBX?
Ashok Gautam will head IIBX as MD and CEO. He took charge in February 2022 and worked with IDBI Bank before this. He has earlier worked with the State Bank of India (SBI).
Other inaugurations in GIFT-City:
- PM Modi also laid the foundation stone for the headquarters building of the International Financial Services Centres Authority at GIFT-City.
- Modiji also launched the NSE IFSC-SGX Connect platform. Connect is a framework between NSE’s subsidiary in GIFT IFSC and Singapore Exchange. Through this platform, clients, investors and trading members of SGX who used to trade in NSE listed Indian securities through SGX would now trade in these securities through NSE IFSC.