Why is it in the News?

The State Bank of India (SBI) recently announced that it has secured the distinction of being the first bank to become a trading-cum-clearing (TCM) Member of the India International Bullion Exchange at the GIFT City in Gujarat.

What is the International Bullion Exchange (IIBX)?

• India International Bullion Exchange (IIBX) is India's first International Bullion Exchange.
• It is situated within the Gujarat International Finance Tech City (GIFT City) IFSC in Gandhinagar, Gujarat.
• Conceptualized to serve as a premier platform for importing bullion into India, IIBX aims to establish a world-class ecosystem for bullion trading, fostering investment in bullion financial products, and providing top-tier vaulting facilities.

What is Bullion?

• Bullion refers to high-purity physical gold and silver, typically stored in the form of bars, ingots, or coins.
• While sometimes recognized as legal tender, bullion primarily serves as a reserve for central banks and institutional investors.

Key Features:

• Transparent Price Discovery: IIBX prioritizes transparent price discovery mechanisms, ensuring fair and equitable transactions.
• Responsible Sourcing and Supply Chain Integrity: Emphasizing ethical practices, IIBX upholds responsible sourcing and supply chain integrity standards.
• Quality Assurance and Standardization: IIBX maintains rigorous quality assurance protocols and standardized practices to uphold the integrity of traded bullion.

Regulation and Oversight:

• Under the governance of the International Financial Services Centers Authority (IFSCA), IIBX operates under a unified regulatory framework dedicated to the development and oversight of financial products, services, and institutions within IFSCs.

Competitive Advantage:

• Offering a diverse array of products and cutting-edge technology, IIBX provides cost-effective solutions unparalleled by Indian exchanges and global counterparts in major financial hubs like Hong Kong, Singapore, Dubai, London, and New York.

What is the International Financial Services Centers Authority (IFSCA)?

• The International Financial Services Centers Authority (IFSCA) is a regulatory body established in India to oversee and regulate financial products, services, and institutions operating within International Financial Services Centers (IFSCs).
• IFSCA was formed to develop and promote the financial ecosystem within IFSCs, ensuring compliance with international standards and best practices.
• It regulates various entities such as banking, insurance, securities markets, and other financial intermediaries to foster growth and innovation in the financial sector within IFSCs.
• IFSCA's jurisdiction includes Gujarat International Finance Tech City (GIFT City) IFSC in Gandhinagar, Gujarat, which serves as a hub for international financial activities in India.