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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?
- Bullion refers to physical gold and silver of high purity that is often kept in the form of bars or coins.
- Bullion can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.
- Investors can buy or sell bullion through dealers who are active on one of several global bullion markets.
About the International Bullion Exchange:
- 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.
- 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:
- All the market participants at a common transparent platform for bullion trading
- Provide an efficient price discovery and assurance in the quality of gold
- Enable greater integration with other segments of financial markets
- Help establish India’s position as a dominant trading hub in the world.