The IIBX Ecosystem: Revolutionizing Bullion Trading Via GIFT

The India International Bullion Exchange IFSC Ltd (IIBX) is a landmark initiative aimed at transforming India's bullion market by providing a seamless and transparent platform for trading gold and silver. IIBX facilitates bullion imports through a structured framework that includes Qualified Jewellers, TRQ Holders, IFSC Banking Units, International Clients, and Trading Members.

Key Stakeholders in the IIBX Ecosystem

• Qualified Jewellers:?Can import gold and silver seamlessly.
• Valid TRQ Holders:?Allowed to import gold directly through IIBX.
• IFSC Banking Units:?Act as Trading Members (TM) and Clearing Members (CM).
• International Clients and IFSC Trading Members:?Allowed to freely trade on IIBX.
• Nominated Banks:?Authorized to import gold and silver into India as Special Category Clients.
• Unified Regulator:?Ensures compliance and smooth operations.
• International Bullion Banks, Refineries, and Traders:?Being onboarded to enhance liquidity and market depth.

Evolution of IIBX

• February 2020:?Finance Minister announced plans to set up an International Bullion Exchange at GIFT IFSC.
• April 2020:?Establishment of the International Financial Services Centres Authority (IFSCA).
• August 2021:?Incorporation of IIBX and issuance of the operational framework by IFSCA.
• July 29, 2022:?Hon’ble Prime Minister of India launched IIBX.
• May 10, 2023:?IFSCA notified the International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020.

World-Class Vaulting Facilities

IIBX offers state-of-the-art vaulting infrastructure, currently featuring three vaults in GIFT City, with plans to establish multiple vaults across the country. The India International Depository IFSC Ltd. (IIDI) is responsible for maintaining demat accounts for seamless bullion transactions.

Products, Market Hours, and Settlement Types

Gold Contracts Available on IIBX

• GOLD 995 T+0
• GOLD MINI 999 T+0
• UAEGD GOLD 995 T+0
• UAEGD GOLD 999 100 Grams T+0
• UAEGDTRQ GOLD 995 T+0
• UAEGDTRQ GOLD 999 100 Grams T+0
• Gold 1 KG

Silver Contracts Available on IIBX

• SILVER GRAINS T+0 (LBMA)
• UAEGD SILVER GRAINS T+0
• UAEGDCEPA SILVER GRAINS T+0
• SILVER BARS T+0 (LBMA)
• UAEGD SILVER BARS T+0
• Silver Bars (30Kg)
• Silver Grains (20Kg)

Market Hours and Fund Settlement

• Market operates from 9:00 AM to 6:30 PM IST.
• T+0 Settlement Contracts?with 100% early pay-in of funds and securities.
• Delivery is compulsory in the form of Bullion Depository Receipts (BDR).
• BDR Settlement occurs every 30 minutes.

Advantages for TRQ Holders

Removal of IGCR Compliance

• IGCR rule no longer applies?if the importer and TRQ holder are the same entity.
• TRQ holders importing through IIBX become direct importers, exempting them from IGCR compliance.

Reduced Customs Duty

• Only 14% Custom Duty applicable.
• No need to block 1% of Custom Duty as Bond.
• No requirement to deposit 1% Custom Duty value with intermediaries.

Additional Benefits for TRQ Holders

• Transparent Pricing:?Fair and democratic pricing available to all stakeholders.
• Efficient Capital Management:?No upfront customs duty payments, allowing for better fund allocation.
• Flexibility in Quantity:?Ability to purchase TRQ gold in smaller quantities (100 grams or 1 kg).
• Low Transaction Charges:?Cost-effective trading experience.
• Quality Assurance:?Gold sourced from UAE Good Delivery accredited refiners.
• Secure Storage:?Vaulting partners approved by IFSCA and IIDI.
• Fast Settlement:?BDR credited to demat accounts every 30 minutes.
• Nationwide Delivery:?Physical bullion delivered across India within 24 hours.

Process Flow for Trading on IIBX

Steps for Sellers

1. Bullion dealers or banks deposit bullion at IFSC vaults.
2. Undergo the demat process.
3. Generate a Bullion Depository Receipt (BDR).
4. Place a sell order on the IIBX trading system.

Steps for Buyers

1. Qualified jewellers
2. receive an AD letter from IIBX for USD remittance.
3. Convert INR to USD. & Ensure the receipt of USD in IIBX Clearing.
4. Place a buy order on the IIBX trading system.

Following the matching of Buy and Sell Orders:

?IIDI transfers BDR to the Buyer's Demat Account

?Cancellation of Bullion Depository Receipts

?Customs clearance upon submission of the Bill of Entry

?Physical delivery of Gold at the Vault

Process for TRQ Holders to Import Gold

1. Open an IIBX Trading and Demat Account.
2. Register on ICEGATE for customs clearance.
3. Engage with a CHA (Customs Handling Agent).
4. Obtain TRQ license registration at the port.
5. Coordinate with logistics partners for delivery.

IIBX Knowledge Center

IIBX has launched a knowledge Center?on its website to educate traders, investors, and market participants on bullion trading processes, regulations, and advantages of using the IIBX platform.

For more information, visit: Contact Us