Pilot Launch of International Bullion Exchange – The Gateway for Bullion Imports

Source: PIB

What is the News?

International Financial Services Centres Authority(IFSCA) has launched the pilot run for the International Bullion Exchange.

What is Bullion?

1. Bullion refers to physical gold and silver of high purity that is often kept in the form of bars or coins.
2. Bullion can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.
3. Investors can buy or sell bullion through dealers who are active on one of several global bullion markets.

About the International Bullion Exchange:

1. International Bullion Exchange will be a ‘Gateway for Bullion Imports into India’, wherein all bullion imports for domestic consumption will be channelised through the exchange.
2. Managed by:  India International Bullion Holding IFSC Ltd (IIBH) has been created for setting up and for operationalising International Bullion Exchange at IFSC, GIFT City.

Expected Benefits: The exchange ecosystem is expected to bring: 

1. All the market participants at a common transparent platform for bullion trading 
2. Provide an efficient price discovery and assurance in the quality of gold
3. Enable greater integration with other segments of financial markets 
4. Help establish India’s position as a dominant trading hub in the world.