India International Bullion Exchange (IIBX) is India’s first bullion exchange, launched on 29 July 2022 in Gujarat.
Bullion refers to physical gold and silver of high purity often kept in the form of bars, ingots, or coins. It can be considered legal tender and is often held as reserves by central banks or held by institutional investors.
IIBX was launched in the International Financial Services Center (IFSC).
It is the 3rd exchange of its kind in the globe.
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.
It offers a diversified portfolio of products and technology services at a cost far more competitive than the Indian exchanges as well as other global exchanges in Singapore, Dubai, Hongkong, New York and London.
As the second biggest consumer of gold globally, setting up of the IIBX is seen as India’s effort to bring transparency to the market for the precious metal.
International Financial Services Centers Authority (IFSCA) is the regulator of IIBX.
Significance
It will empower India to gain its rightful place in the global bullion market and serve the global value chain with integrity and quality.
IIBX also re-enforces the commitment of the Government of India towards enabling India to be able to influence global bullion prices as a principal consumer.
International Financial Services Centres Authority
It was established in April 2020 under the International Financial Services Centres Authority Act, 2019.
It is headquartered at GIFT City, Gandhinagar in Gujarat.
Functions:
The Authority shall regulate all such financial services, financial products and Financial Institutions in an IFSC. It may also recommend to the Central Government such other financial products, financial services and financial institutions which may be permitted in the IFSCs.
Powers:
All powers exercisable by the respective financial sector regulatory (viz. Reserve Bank of India, Securities and Exchange Board of India, IRDAI, and Pension Fund and Regulatory Development Authority etc.) under the respective Acts shall be solely exercised by the Authority in the IFSCs in so far as the regulation of financial products, financial services and FIs that are permitted in the IFSC are concerned.
Processes and Procedures:
The processes and procedures to be followed by the Authority shall be governed in accordance with the provisions of the respective Acts of Parliament of India applicable to such financial products, services or institutions, as the case may be.
Grants by the Central Govt:
The Central Govt. may, after due appropriation made by Parliament by law on this behalf, make to the Authority grants of such sums of money as the Central Government may think fit for being utilized for the purposes of the Authority.
Transactions in Foreign Currency:
The transactions of financial services in the IFSCs shall be done in the foreign currency as specified by the Authority in consultation with the Central Govt.
