New Delhi, Aug 18 (SocialNews.XYZ) The International Financial Services Centre, Gujarat has pilot launched the International Bullion Exchange on its platform.
The International Bullion Exchange is scheduled to go live on October 1, the Foundation Day of International Financial Services Centres Authority (IFSCA).
Following the announcement by Finance Minister Nirmala Sitharaman in Union Budget 2020-21, the International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020 were notified on December 11, 2020 covering the exchange, clearing corporation, depository, and vaults.
The government has also taken steps to notify bullion spot trading and bullion depository receipts with underlying bullion as financial products and bullion-related services as financial services.
The International Bullion Exchange is expected to be the "gateway" for bullion imports into India, wherein all the bullion imports for domestic consumption shall be channelised through the exchange.
The exchange ecosystem is expected to bring all the market participants at a common transparent platform for bullion trading and provide an efficient price discovery, assurance in the quality of gold, enable greater integration with other segments of financial markets, and help establish India's position as a dominant trading hub.
Following an MoU between the National Stock Exchange of India Ltd, the Multi Commodity Exchange of India Ltd, India INX International Exchange Ltd (INDIA INX), the National Securities Depository Ltd, the Central Depository Services (India) Ltd, holding company India International Bullion Holding IFSC Ltd (IIBH) has been created for setting up and operationalising the International Bullion Exchange, the Bullion Clearing Corporation, and the Bullion Depository in IFSC, GIFT City.
The IFSCA has approved the application by the holding company for setting up the International Bullion Exchange through its subsidiary, India International Bullion Exchange IFSC Ltd, encompassing the bullion exchange and clearing corporation.
The CDSL-IFSC, a foreign depository, has been designated as the bullion depository for the bullion exchange responsible for managing the vault.
Source: IANS
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