All you need to know about India’s first international $16Bn bullion exchange
Prime Minister Narendra Modi launched launch India’s first International Bullion Exchange – International Bullion Exchange (IIBX) – in the GIFT City (Gujarat International Finance Tec-City), along with several other projects. Let’s find out more about International Bullion Exchange (IIBX).
What Is IIBX?
IIBX is the third such exchange in the world and has been set up with an aim to enable India to become an influencer for global bullion prices. Apart from accelerating the financialisation of gold in India, the IIBX will facilitate ‘efficient’ price discovery with the assurance of responsible sourcing and quality.
The bullion exchange will be run by the India International Bullion Holding IFSC (International Financial Services Centre) Limited (IIBH), a partnership between the Central Depository Services Limited, the National Securities Depository Limited (NSDL), the Multi Commodity Exchange of India Limited (MCX), the India INX International Exchange Limited (India INX), and the National Stock Exchange of India Limited (NSE).
The IIBH has set up the India International Bullion Exchange, comprising the Bullion Exchange and the Bullion Clearing Corporation. The products and technology offered by IIBX will be diverse and available at significantly lower prices than those offered by Indian exchanges as well as global exchanges in Hong Kong, Singapore, Dubai, London, and New York. Furthermore, the exchange will have three vaults, one from Sequel Global (ready and approved) and one from Brinks India (ready but final approval pending). The third one is still being built.
What is bullion?
Bullion is physical gold or silver of high purity that is often kept in the form of bars or coins. Bullion, which is considered legal tender, is frequently held as reserves by central banks or by institutional investors.
Modi also laid the foundation stone for a Rs 200 crore headquarters building of the International Financial Services Centres Authority (IFSCA) and presided over the exchange of memorandums of understanding (MoUs) by IFSCA with foreign regulatory authorities and the Department of Space. Liked this post? Don’t forget to check out our other short stories in our Quick Read section.