SBI Is 1st Bank as Trading-Clearing Member Of IIBX

Public sector lender, State Bank of India (SBI), on Monday announced it has become the first trading-cum-clearing member at the India International Bullion Exchange (IIBX) – the country’s first bullion exchange in GIFT City Gandhinagar.

What is Bullion?

1. Bullion refers to physical gold and silver of high purity, typically kept in the form of bars, ingots, or coins.
2. Bullion can sometimes serve as legal tender and is often held as reserves by central banks or institutional investors.

About the India International Bullion Exchange (IIBX):

1. India's First International Bullion Exchange:
   IIBX holds the distinction of being India's first international bullion exchange.
2. Location:
   The exchange is strategically located at GIFT City (Gujarat International Finance Tech City) IFSC (International Finance Services Center) in Gandhinagar, Gujarat.
3. Objectives:
   IIBX aims to serve as a gateway for bullion imports into India. It seeks to establish a world-class bullion exchange ecosystem that facilitates bullion trading, promotes investment in bullion financial products and provides vaulting facilities within the IFSC.
4. Key Features:
   IIBX emphasizes transparent price discovery, responsible sourcing, supply chain integrity, quality assurance, and standardization.
5. Regulatory Framework:
   The exchange is regulated by the International Financial Services Centers Authority (IFSCA), which supervises the development and regulation of financial products, services, and institutions within the IFSCs.
6. Competitive Advantage:
   The products and technology offered at IIBX are diversified and available at a cost that is highly competitive compared to Indian exchanges and global exchanges in major financial centers.

International Financial Services Centers Authority (IFSCA):

1. Establishment:
   IFSCA is a statutory authority established under the International Financial Services Centres Authority Act, 2019.
2. Mandate:
   IFSCA's mandate is to develop and regulate financial products, services, and institutions within the International Financial Services Centres (IFSCs).
3. Objectives:
   IFSCA aims to promote a stronger global relationship, serve the needs of the Indian economy and serve as an international financial platform for the region.
4. Pre-IFSCA Regulation:
   Prior to IFSCA's establishment, domestic financial regulators such as RBI, SEBI, PFRDA, and IRDAI regulated the business in IFSC.
5. GIFT-IFSC:
   GIFT-IFSC has the distinction of being the first IFSC in India.

Conclusion:

India International Bullion Exchange (IIBX) represents an important milestone in India's bullion market. With a focus on transparent and competitive bullion trading, IIBX is set to play a key role in attracting global participants, promoting investment and strengthening India's position as a regional bullion hub.

 

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