India’s first global gold exchange comes to Gujarat. Prime Minister Narendra Modi inaugurated the India International Bullion Exchange (IIBX). This is based at the Gujarat International Finance Tec-City (GIFTEC).
What is IIBX? Here is what you need to know.
Bullion is physical gold or silver of high purity which is often kept in the form of bars or coins. It is mostly held as reserves by central banks or institutional investors.
The bullion exchange will be operated by the India International Bullion Holding IFSC (International Financial Services Centre) Limited (IIBH), a joint collaboration involving the Central Depository Services Limited, National Securities Depository Limited (NSDL), Multi Commodity Exchange of India Limited (MCX), India INX International Exchange Limited (India INX), and National Stock Exchange of India Limited (NSE).
As per the statement from the International Financial Services Centres Authority (IFSCA), the IIBX will facilitate ‘efficient’ price discovery by assuring responsible sourcing and quality besides giving impetus to the financialisation of gold in India.
The gold exchange aims to make a regional bullion hub that will let more jewellers import this valuable metal. The bourse is expected to attract dealers, refineries, and foreign banks. Through the exchange, qualified jewellers can directly import gold. As per the current rules, only a few banks and nominated agencies approved by the central bank are allowed to import gold.
In a broader sense, the bourse’s aim is to set up an exchange on the lines of the Shanghai Gold Exchange and Borsa Istanbul, and thus make India a key regional hub for bullion flows. Three companies will provide vault services. IIBX also plans to allow silver trading in the future.
