Page 28 - Bullion World Volume 3 Issue 10 October 2023

Bullion World | Volume 3 | Issue 10 | October 2023

Unleashing the Potential of IIBX

Mr Ashok Gautam, IIBX IFSC

The launch of the India International Bullion Exchange (IIBX) at IFSC GIFT
City, India has been hailed as one of the most significant reforms in the Indian
bullion market since the liberalization of gold imports in 1997. IIBX has been
designed to revolutionize the functioning of the bullion industry, facilitating the
integration of India’s gold trading with the international gold community and
positioning it as a major trading and vaulting hub. IIBX brings standardisation
of gold inflows into India and create a robust regulatory framework through
IFSCA for the bullion trade. It is expected to strike an equilibrium to reduce
the market inefficiencies that exist in the Indian bullion trade and create a
transparent platform for bullion trading.

Mr Ashok Gautam
IIBX has created a robust trading Jewellers. There are 12 IFSC entities
platform to bring a transparent, which are onboarded as Trading/
anonymous and democratic pricing Trading cum Clearing / Professional
available with easy-to-use desk top Clearing Members of the Exchange.
convenience trading, whereby the
IFSCA notified Qualified Jewellers Bullion Vaults:
can import Gold through IIBX. This In IIBX ecosystem at present there
has disintermediated the import of are 3 vaults at GIFT IFSC where a account of the Qualified Jeweller. This
Gold in the country as at present total capacity to store 450 tons of has been enabled to ensure that the
the other way Jewellers can import Gold and 4500 tons of silver has been Gold is released on the same day of
Gold is through the Nominated created. These vaults are approved the trade at IIBX, post payment of
Banks and Nominated agencies. by the IFSCA. Next IFSCA approved Custom Duty and other formalities by
With the transparency and anonymity vault is likely to be operationalised the Qualified Jeweller.
of trades it is important that the soon at Chennai SEZ where Vault
democratic way of trading is also has been physically established and
clarified. It means that on the trading various necessary approvals are ICEGATE at GIFT CITY, SEZ :
platform if a price is available for a being obtained by the Vault operator. The Gold trading was slow to pick
50 Kg lot, then as low as 1Kg or 100 up at IIBX, as initially ICEGATE
Grams gold bar can also be priced Global First – Every 30 Minute (The Indian Customs Portal) was
at the same price which is normally Settlement of BDR: not available at GIFT CITY SEZ,
not available in case of other OTC IIBX has been mindful of the fact that which has become operational
channels of import. IIBX offers two the success of the physical delivery since mid-May 2023. It took some
broad sets of contracts catering to contracts on Exchange requires quick time to resolve the teething issues
995 purity of 1 Kg gold bars and 999 turnaround of the Gold post trading which have now been sorted and
purity of 100 grams gold bars. at IIBX. IIBX has been able to start entries are flowing through ICEGATE
GLOBAL FIRST initiative of every 30 smoothly, whereby Gold is released in
Entities onboarded with IIBX: minutes settlement cycle of Bullion a short time to the Qualified Jeweller
On Sell side IIBX has been able to Depository Receipts (BDR). It means post trade on IIBX and completion
onboard 18 Qualified Suppliers and that within 30 minutes of the Trade of Depository, Customs and Vault
on buy side there are 102 Qualified the BDR is credited in the Demat formalities.

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