The International Financial Services Centres Authority (IFSCA) chairperson did the pilot run of the International Bullion Exchange.
Context
The International Financial Services Centres Authority (IFSCA) chairperson did the pilot run of the International Bullion Exchange.
Key feature
- The exchange falls under the International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020 which was notified on December 11, 2020 following the announcement by the finance minister in Union Budget 2020-21.
- The IFSCA has envisioned the International Bullion Exchange as a 'Gateway for Bullion Imports into India', wherein all the bullion imports for domestic consumption shall be channelised through the exchange.
Significance of the exchange system
- According to IFSCA, the exchange ecosystem is expected to
- bring all the market participants at a common transparent platform for bullion trading
- provide an efficient price discovery
- assurance in the quality of gold
- enable greater integration with other segments of financial markets
- help establish India’s position as a dominant trading hub in the World
India International Bullion Holding (IIBH)
- IIBH is a holding company created for setting up and operationalizing International Bullion Exchange, Bullion Clearing Corporation and Bullion Depository in IFSC, GIFT City.
- IIBH was formed following a memorandum of understanding (MoU) between
- National Stock Exchange of India Limited (NSE)
- Multi Commodity Exchange of India Limited (MCX)
- India INX International Exchange (IFSC) Limited (INDIA INX)
- National Securities Depository Limited (NSDL)
- Central Depository Services (India) Limited (CDSL)
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