India International Bullion Exchange (IIBX)

India International Bullion Exchange (IIBX):

The Prime Minister has laid the foundation stone of the headquarters building of the International Financial Services Centers Authority (IFSCA) in GIFT City, Gandhinagar.

  • The building has been conceptualized as an iconic structure, reflective of the growing prominence and stature of GIFT-IFSC as a leading International Financial Centre.
  • He also launched the India International Bullion Exchange (IIBX), India’s first International Bullion Exchange in GIFT-IFSC the NSE IFSC-SGX Connect.

Bullion Exchange:

  • Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.
  • Bullion can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.
  • The Government had notified in August 2020 about the Bullion Spot Delivery Contract and Bullion Depository Receipt (BDR) with underlying Bullion as Financial Product and related services as Financial Services.
  • A bullion Exchange is a market through which buyers and sellers trade gold and silver as well as associated derivatives.
  • There are various bullion markets around the world with the London Bullion Market known as the primary global market trading platform for gold and silver.

IIBX:

  • India International Bullion Exchange (IIBX) was first announced in the Union Budget 2020 for easing the Gold Import by Jewellers in India.
  • It is a platform that not only enrols jewellers to trade on the exchange, but has also set up necessary infrastructure to store physical gold and silver.
  • IIBX will facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialisation of gold in India.
  • IFSCA is entrusted with notifying the eligible qualified jewellers in India for directly importing gold through IIBX.

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