Depository Vaulting

IIBX leverages an integrated depository and vaulting ecosystem to support electronic holding, transfer and settlement of bullion transactions.
Depository services are provided through India International Depository IFSC Limited (IIDI), which enables participants to hold and transfer bullion electronically through demat accounts and Bullion Depository Receipts (BDRs).
Supporting the depository framework is an approved network of vault infrastructure that facilitates secure storage and movement of underlying physical bullion.
This integrated ecosystem enables seamless linkage between physical bullion, electronic ownership and exchange-based trading and settlement.

Depository Services

Electronic Holding and Transfer of Bullion
Depository services for the bullion ecosystem are provided by India International Depository IFSC Limited (IIDI) www.iidi.co.in .

IIDI facilitates electronic ownership and transfer of bullion through maintenance of demat accounts and administration of Bullion Depository Receipts (BDRs). Depository services support:
    •   Electronic holding of BDRs
    •   Transfer of electronic ownership
    •   Settlement support
    •   Creation and extinguishment of BDRs
    •   Depository participant servicing

The depository framework serves as the interface connecting market participants with exchange-based bullion trading and settlement.

Depository Participant List

Depository Participants (DPs) provide participant access to depository services offered through IIDI. Depository Participants facilitate:
    •   Demat account opening and maintenance
    •   BDR transfer services
    •   Settlement-related support
    •   Participant servicing and account operations
The latest list of Depository Participants and contact details is available on IIDI website.

Vaulting Infrastructure

Physical Custody Infrastructure Supporting Depository Operations
Vaulting infrastructure supports storage and custody of physical bullion underlying electronic ownership maintained through the depository framework. Vaults are:
    •   Registered with the International Financial Services Centres Authority (IFSCA)
    •   Empanelled by India International Depository IFSC Limited (IIDI)
    •   Located in GIFT IFSC and other eligible Special Economic Zone (SEZ) locations

Vault infrastructure supports:
    •   Receipt and storage of eligible bullion
    •   Physical custody and inventory management
    •   Deposit and withdrawal operations
    •   Support for BDR creation and extinguishment
Vaults operate independently in accordance with applicable regulatory and operational requirements.

Approved Vaults

Eligible bullion may be deposited and withdrawn through approved vault facilities empanelled by IIDI. The latest list of approved vaults and operational details are available on IIDI website. Depository services are provided by IIDI, while vault infrastructure operates through IFSCA-registered and IIDI-empanelled vault providers.
Activities are governed by applicable regulatory requirements, depository procedures and operational guidelines.

BDR Creation Process

Bullion Depository Receipt (BDR) Creation is the process through which eligible physical bullion is converted into electronic ownership and credited into a participant’s demat account. The process is facilitated through India International Depository IFSC Limited (IIDI) using approved vault infrastructure and enables bullion to become available for trading, clearing and settlement within the IIBX ecosystem.
BDRs are issued in electronic form against underlying physical bullion stored in approved vaults and maintained through the depository framework.

Key Features
    •   Electronic ownership through demat account
    •   One-to-one linkage with underlying physical bullion
    •   Secure custody through approved vault infrastructure
    •   Seamless integration with trading and settlement
    •   Transparent and auditable process

BDR Extinguishment Process

Bullion Depository Receipt (BDR) Extinguishment is the process through which electronic ownership of bullion held in demat form is converted into physical bullion.
The process enables participants holding BDRs in their demat account maintained with India International Depository IFSC Limited (IIDI) to obtain delivery of the underlying physical bullion through approved vault infrastructure. BDR extinguishment facilitates transition from electronic ownership to physical possession while maintaining traceability and settlement integrity across the depository ecosystem.

Key Features
    •   Conversion of electronic ownership into physical bullion
    •   Processing through demat account and depository framework
    •   Controlled withdrawal through approved vault infrastructure
    •   One-to-one linkage between BDR and underlying bullion
    •   Secure and auditable release process