Page 19 - Bullion world volume 4 issue 6 june 2024

Bullion World | Volume 4 | Issue 6 | June 2024

GIFT-IFSC as a jurisdiction operates independently The Hon'ble Prime Minister launched India
of domestic regulatory frameworks which may be International Bullion Exchange (IIBX), on July 29,
applicable onshore and falls outside the scope of the 2022, at Gift City ‘s International Financial Services
Foreign Exchange Management Act (FEMA) guidelines Centre (IFSC).
set by the Reserve Bank of India. It is authorized to During the launch the Hon’ble Prime Minister mentioned
conduct transactions involving 11 'Specified Foreign that:
Currencies' as outlined in the International Financial “India is a very big market in the field of gold and silver
Services Centres Authority (Banking) Regulations, 2020, today. But, should that be the only identity of India? The
subject to amendment from time to time. identity of India should also be that of a market maker.
IIBX is an important step in this direction. IIBX will also
IFSCA's mandate aims to cultivate robust global provide opportunities to trade in gold directly through
connections while catering to the specific requirements the exchange. As the gold trading market becomes
of the Indian economy. Positioned as an international organized, the demand for gold in India will also impact
financial platform serving both regional and global and determine the gold prices.
economies, IFSCA prioritizes the facilitation of cross-
border financial activities while upholding stringent The objectives of IIBX are multifaceted, aiming to
regulatory standards. enhance liquidity, transparency, and price discovery in
bullion trading through various mechanisms.
In summary, IFSCA's overarching objective is to promote
the seamless functioning of GIFT-IFSC operations, Firstly, it serves as a centralized platform for market
foster international competitiveness, and facilitate India's participants, facilitating efficient matching of buy and sell
integration into the global financial landscape. orders through price-time priority, thereby enhancing
market efficiency and liquidity.
IFSCA's Focus on Building a Strong Bullion Market
Ecosystem at GIFT-IFSC Secondly, it provides standardized contracts with
1. Development of a transparent international defined sizes, quality specifications, and delivery terms,
bullion exchange ecosystem at GIFT-IFSC reducing transaction costs and ensuring uniformity in
IFSCA spearheaded the establishment of the state- trading terms for all participants. Additionally, through
of-the-art infrastructure of the India International continuous trading activities in both spot and derivatives,
Bullion Exchange (IIBX) promoted by 5 major Market IIBX contributes to price discovery, enabling informed
Infrastructure Institutions (MIIs) i.e., National Stock decision-making for market participants.
Exchange (NSE), India International Exchange (INX- a
subsidiary of BSE), Multi Commodity Exchange (MCX), Furthermore, robust market surveillance mechanisms are
National Securities Depository Ltd (NSDL), Central in place to detect irregularities and market manipulations,
Depository Services Ltd (CDSL) have come together maintaining market integrity and investor confidence.
to create a single bullion exchange platform for bullion Under the regulatory oversight of IFSCA, IIBX operates
trading and clearing at International Financial Services transparently, ensuring fair and orderly trading and
Centre (IFSC) at GIFT City. The IIBX was accorded enhancing market credibility.
recognition as a Bullion Exchange and Bullion Clearing
Corporation on December 10, 2021.

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