Source-This post on India International Bullion Exchange (IIBX) is based on the article “SBI is 1st bank as trading-clearing member of IIBX” published in “The Times of India” on 14th May 2024.
Why in the News?
State Bank of India (SBI) has become the first trading-cum-clearing member of the India International Bullion Exchange (IIBX) located in GIFT City, Gandhinagar.
About India International Bullion Exchange (IIBX)
1. Location: It is situated in GIFT City (Gujarat International Finance Tech City), Gandhinagar, Gujarat.
2. Purpose: IIBX serves as India’s first international bullion exchange, facilitating the import of bullion and offering a comprehensive ecosystem for bullion trading and investment.
3. Functions and Features:
i) Transparent Price Discovery: It ensures clear pricing mechanisms for bullion.
ii) Responsible Sourcing: It focuses on integrity and ethical sourcing within the supply chain.
iii) Quality Assurance and Standardization: It maintains high standards of quality and uniformity in bullion trading.
3. Regulation and Management: It is governed by the International Financial Services Centers Authority (IFSCA), which oversees financial products, services, and institutions within IFSCs.
4. Competitive Edge: It offers a variety of products and technologies at competitive prices compared to both Indian and major global exchanges like those in Hong Kong, Singapore, Dubai, London, and New York.
About Bullion
1. Bullion is high-purity gold and silver, typically stored as bars, ingots, or coins.
2. It can occasionally serve as legal tender and is commonly held as reserves by central banks or by institutional investors.
About International Financial Services Centers Authority (IFSCA)
| Aspects | Description |
| About | It was created under the International Financial Services Centres Authority Act, 2019. |
| Objectives and Functions | 1. It aims to connect with global financial markets and cater to the needs of the Indian economy. 2. It has been tasked with developing and regulating financial services and institutions within IFSCs. |
| Regulatory Framework | Before IFSCA, various domestic financial regulators like RBI, SEBI, PFRDA, and IRDAI were responsible for regulatory functions in IFSCs. |
| Significance of GIFT-IFSC | GIFT-IFSC is India’s inaugural International Financial Services Centre, pioneering the integration of financial services with global markets under a unified regulatory body. |
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