The International Bullion Exchange will go live on October 1, 2021 on the Foundation Day of International Financial Services Centres Authority (IFSCA). Termed as the “gateway for bullion imports into India”, all the bullion imports for domestic consumption shall be channelised through the exchange.
Injeti Srinivas, chairperson of IFSCA on Wednesday had launched the pilot run of the exchange, a statement issued by the Ministry of Finance said.
Finance Minister Nirmala Sitharaman had announced setting up of an international bullion exchange in the Union Budget for 2020-21. Subsequently, the International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020 were notified on December 11, 2020 which cover the Bullion Exchange, Clearing Corporation, Depository and Vaults.
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 in the world, the statement further said.
The holding company India International Bullion Holding IFSC Limited has been created for setting up and operationalising International Bullion Exchange, Bullion Clearing Corporation and Bullion Depository in IFSC, GIFT City, Gujarat.
The holding company was created after MoUs between National Stock Exchange of India Limited (NSE), the Multi Commodity Exchange of India Limited (MCX), India INX International Exchange (IFSC) Limited (INDIA INX), National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) were finalised.