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Circular
Circular No.   20230510-1   Circular Date   10-05-2023
Category   Clearing & Settlement   Segment   Spot
Subject   Introduction of Every 30 Minutes Settlement of Bullion Depository Receipts (BDR) and Direct Pay-out of BDRs to Clients / LPTMs for pre-funded T+0 contracts
 
Content

To

All Participants of IIBX (Members,

Qualified Jewellers & Qualified Suppliers)

India International Bullion Depository IFSC Limited (IIDI)

Subject: Introduction of Every 30 Minutes Settlement of Bullion Depository Receipts (BDR) and Direct Pay-out of BDRs to Clients / LPTMs for pre-funded T+0 contracts.

India International Bullion Exchange IFSC limited (IIBX) is committed towards continued improvement in customer satisfaction through increase in efficiency and accuracy by providing the world class technology with ease of trade and settlement along with robust Risk Management.

As a part of its committed efforts, IIBX has become a globally first Exchange to introduce every 30 Minutes Settlement of Bullion Depository Receipts (BDR) and Direct Pay-out of BDRs to Qualified Jewellers, Clients / LPTMs for pre-funded T+0 contracts .

The introduction of above features would expedite the whole process of physical delivery of Bullion after extinguishment of the BDRs, filing of bill of entry and customs clearance.

Change in Settlement Process for BDRs:

Instead of settlement of BDRs only once in the evening between 18:00 Hrs to 21:00 Hrs. (IST) on day of Trade, the pay-out of BDRs would be initiated by IIBX Clearing every 30 minutes throughout the trading hours.

The pay-out of BDRs will be made directly into the demat account of buyers (QJs).

It may be noted that the multiple settlements during the day at every 30 minutes is proposed only for BDRs and not for funds currently. The funds pay-out would happen only once during the evening as per the current settlement timings.

All the settlements during the day would have the same settlement number.

Every 30 minutes Settlement of BDRs and Direct Pay-out of BDRs to Clients/LPTMs is introduced only for the T+0 Products and the Block Deals therein, wherein 100% advance pay in of funds is mandatory prior to placing a buy order and 100% advance pay in of securities (BDR) is mandatory prior to placing a sell order on the exchange, which ensures mitigation of settlement risk.

The above enhancements in the Clearing & Settlement System are introduced with effect from May 10, 2023.

For any clarifications, Members may contact the following departments.

The contact details are as below: 

Sr. No

Department

Phone

Email

1

Trading Operations

+91 79 69 697 119/120

trading.operations@iibx.co.in

2

Clearing & Settlement Operations

+91 79 69 697 121/122

cs.ops@iibx.co.in

  

For and on behalf of

India International Bullion Exchange IFSC Limited

  

  

Vinod Ramachandran

Head – Clearing Settlements & Risk Management

Contact No. +91 79 6969 7121

Email: vinod.ramachandran@iibx.co.in