What is India International Bullion Exchange (IIBX)?

July 26, 2022

Prime Minister Narendra Modi will launch the “India International Bullion Exchange” on July 29, 2022. It will be operationalised at the “Gujarat International Finance Tec-City (GIFT City)”.

Key Points

On the occasion, Prime Minister Modi will also lay down the foundation stone of IFSC Authority (IFSCA) headquarter building.
IFSCA is the unified regulator for development and regulation of financial products, financial institutions and financial services in IFSCs in India.

Purpose of IIBX

IIBX will provide for efficient price discovery with assurance of responsible sourcing and quality.
It will give impetus to financialization of gold across the country.
It will also empower India to gain its rightful place at the global bullion market.
IIBX will serve the purpose of global value chain with integrity and quality.
With the launch of IIBX, India would be able to affect international bullion prices as a principal consumer.

Three Vaults of the IIBX

IIBX will have three vaults:

One will be operated by Sequel. It is ready and has been approved.
Second will be operated by Brinks. It is ready but awaiting the final approval
Third is still under construction.

NSE IFSC-SGX Connect launch

NSE IFSC-SGX Connect will also be launched on July 29. Under this, all orders on NIFTY derivatives, that have been made by members of Singapore Exchange Limited (SGX), will be diverted to and matched on the “order matching and trading platform of NSE-IFSC”. It will help in deepening the liquidity in derivative markets at GIFT-IFSC. Thus, it will attract more international participants and create a positive impact on financial ecosystem in the GIFT-IFSC.

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