India International Bullion Exchange (IIBX)

15.05.2024

India International Bullion Exchange (IIBX)

Why in the news?

             State Bank of India (SBI) recently announced it has become the first trading-cum-clearing member at the India International Bullion Exchange (IIBX).

About India International Bullion Exchange (IIBX):

• It is India's first International Bullion Exchange. It is based at GIFT City (Gujarat International Finance Tec City) IFSC (International Finance Services Center), Gandhinagar, Gujarat.
• It has been conceptualized to provide a gateway to import bullion into India and provide a world class bullion exchange ecosystem to promote bullion trading, investment in bullion financial products, and vaulting facilities in IFSCs.
• It will facilitate Transparent Price Discovery, Responsible sourcing and supply chain integrity, Quality Assurance and Standardization.
• It is regulated by the International Financial Services Centers Authority (IFSCA), a unified authority for the development and regulation of financial products, financial services, and financial institutions at IFSCs.
• Products and technology offered at IIBX are diversified, and available at a cost that is far more competitive than those at Indian exchanges, as well as global exchanges in Hong Kong, Singapore, Dubai, London, and New York.

What is bullion?

• It refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.
• It can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.

Key Facts about International Financial Services Centers Authority (IFSCA):

• It is a statutory authority established on April 27, 2020, under the International Financial Services Centers Authority Act, 2019.
• It is headquartered in GIFT City, Gandhinagar, in Gujarat.
• The IFSCA is a unified authority for the development and regulation of financial products, financial services, and financial institutions at the International Financial Services Centre (IFSC) in India.
• It aims to develop a strong global connection and focus on the needs of the Indian economy, as well as serve as an international financial platform for the entire region.
• Before the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA, and IRDAI regulated the business in IFSC.
• GIFT-IFSC is the maiden IFSC in India.

                                                          Source: The Times of India

In India, which one of the following organizations regulates the India International Bullion Exchange (IIBX)?

1. Reserve Bank of India (RBI)
2. Securities and Exchange Board of India (SEBI)
3. Ministry of Finance
4. International Financial Services Centers Authority (IFSCA)

Answer D