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IIBX FAQ
Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins. Bullion can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.
The Government of India vide notification dated August 31, 2020, had notified the Bullion Spot Delivery Contract and Bullion Depository Receipt (BDR) with underlying Bullion as Financial Product and related services as Financial Services.
Vault means and includes any place of Storage where the Bullion traded on the Exchange are stored. All the Vaults in IFSC are approved by IFSCA.
A depository shall be approved by IFSCA and can be compared to a bank. A depository holds securities (like BDR etc.) of clients/Members in electronic form. Besides holding BDRs, a depository also provides services related to transactions.
India International Bullion Exchange IFSC Ltd (IIBX) is promoted by 5 Market Institutional Investor’s i.e., CDSL, India INX, NSDL, NSE and MCX.
International Financial Services Centres Authority (IFSCA) is the regulator of IIBX.
IIBX is India’s first International Bullion Exchange set up at the GIFT City, Gandhinagar. IIBX offers a diversified portfolio of products and technology services at a cost which is far more competitive than the Indian exchanges as well as other global exchanges in Hong Kong Singapore, Dubai, London and New York.
Following types of entities are eligible to become members of IIBX:
  • Non-Resident Individual / Proprietorship Firm
  • Registered Partnership Firm
  • Private Limited Company
  • Public Limited Company
  • Qualified Jewellers
  • IBU Branches at GIFT City
  • Foreign Bullion Suppliers who follow OECD guidelines
Following are the categories of Membership offered at IIBX
  • Trading Member (TM)
  • Trading Member and Self Clearing Member (TSM)
  • Trading-cum-Clearing Member (TCM)
  • Professional Clearing Member (PCM)
  • Limited Purpose Trading Member (LPTM)
All Indian entities who only clear and settles the trades of trading members (TM) of the Exchange and has no trading rights can become PCM at IIBX.
The same is available on IIBX website (kindly refer to below link).
https://www.iibx.co.in/static/networth.aspx
The same is available on IIBX website (kindly refer to below link).
https://www.iibx.co.in/download/circulars/20220531-1/20220531-1.pdf
A. As per RBI circular no. RBI/2022-23/62/ DoR.AUT.REC.41/ 24.01.001/2022-23 dated June 7, 2022, Branches of Indian Banks operating in GIFT-IFSC can act as Professional Clearing Member (PCM) of India International Bullion Exchange IFSC Limited (IIBX). The same is available on IIBX website (kindly refer to below link).
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12330&Mode=0
As per the below exchange circular (https://www.iibx.co.in/download/circulars/20220121-1/20220121-1.pdf), those Indian entities fulfilling the following conditions shall be considered as ‘Qualified Jewellers’ and shall be permitted to transact as trading members or clients of trading members, on IIBX, for the purpose of import of gold under the above-mentioned ITC(HS) codes:
  • a. The entity shall be engaged in the business of goods falling under ITS(HS) codes 7108, 7113, 7114 and 7118 under Chapter 71 of ITC(HS);
  • b. The entity must have filed due GST returns up to the preceding month prior to making an application to the IIBX. Further, a certificate should be submitted by the entity, duly attested by a practising-chartered accountant or a practising cost accountant or a practising company secretary, stating that 90% of the average annual turnover in the last 3 financial years are through dealing in goods under precious metals; and
  • c. The entity shall have a minimum net worth of 25 crore as per its latest audited financial statement.
Those entities who fulfil the criteria as described in pt. 10 above can apply for Qualified Jewellers (QJ) membership by getting in touch with the Exchange via https://www.iibx.co.in/markets/contactus.aspx
A QJ can become a Trading Member (TM) or a Limited Purpose Trading Member (LPTM) or a Client of existing Trading Member.
The requisite circular for the same is available on IIBX website (kindly refer to below link).
https://www.iibx.co.in/download/circulars/20220418-3/20220418-3.pdf
Kindly refer to the RBI circular no. RBI/2022-2023/57/A.P. (DIR Series) Circular No.04 dated May 25, 2022 for the same. The same is available on IIBX website (kindly refer to below link).
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12324&Mode=0
Yes. All members of the IIBX have to open bullion depository account with India International Depository Limited (IIDL) at IFSC after complying with their KYC formalities.
Depositor will deposit bullion with the identified vault & Vault Manager shall ensure completion of the documentation. On verification , the depository may issue Bullion Depository Receipts in Dematerialize form with underlying bullion, bearing a unique BDR number. Units of these BDR will be credited to the account of the bullion depositor.
Exchange will give confirmation to the depository to extinguish the BDR as part of settlement post transacting on the IIBX. A Withdrawal message will relay electronically to the Vault Manager. On the extinguishment of BDR by depository, dematerialized balance of BDR will be reduced from Depositors account and credited to buyer’s demat account after settlement of the trade by the exchange.
After completing necessary documentation with the depository, vault charges and payment of customs duty, BDR would be converted into physical form.
Only Qualified Jewellers of IIBX can import Gold physically out of IFSC area into Domestic Tarif Area (DTA) area through the exchange.
Government of India has the provided following Tax incentives to IFSC units.
  • NIL Customs duty on Bullion Imports into GIFT SEZ
  • Nil Security Transaction Tax (STT)
  • Nil Commodity Transaction Tax (CTT)
  • Nil Dividend Distribution Tax (DDT)
  • Nil Long Term Capital Gain (LTCG)
  • Nil Short Term Capital Gain (STCG)
  • Nil Stamp duty
All contracts are listed, traded & settled on IIBX are in US Dollars.
Yes. IIBX will provide online trading platform to all exchange members.
Kindly refer the below link for list of products available to trade on IIBX platform:
https://www.iibx.co.in/static/spot.aspx
The clearing and settlement of trades executed on IIBX shall be cleared and settled as per the guidelines issued by International Financial Services Centres Authority (IFSCA) and as per the provisions of Rules, Byelaws and Regulations of the India International Bullion Exchange IFSC Limited as well as any other circulars/guidelines that may be issued in that respect from time to time.

The clearing and settlement shall be done on a multilateral netting basis as per the settlement obligations of the respective Clearing Members. The Clearing Members shall be responsible for all obligations, funds and bullion depository receipts, as well as the payment of margins, penalties, any other levies and settlement of obligations of the trades entered by them as trading members and also of those trading members and custodial participants, if any, for whom they have undertaken to settle as a Clearing Member.

As a set process all obligations in respect of trades entered by Trading Members will be transferred to the respective Clearing Members who have undertaken to act as Clearing Members for them.
All members participants have to ensure 100% Early pay-in before transacting on IIBX for T+0 contract
  • Buyers needs to have the entire order value funded as pay-in margin.
  • Seller needs to have the equivalent bullion order quantity as BDR pay-in margin.
Early pay-in is when you fulfil your settlement obligation (funds or securities) to the Exchange earlier than the designated due date/time for the particular settlement.
Currently in IIBX for T+0 contracts, 100% early pay in of funds is mandatory prior to placing a buy order and 100% early pay in of securities (BDR) is mandatory prior to placing a sell order on the exchange, which ensures NIL settlement risk involved while transacting through IIBX.

Kindly note that, IIBX accepts only US Dollar and BDR as collateral. Going forward when T+2 contracts shall be introduced on IIBX, Risk Management Controls would be prescribed by the Risk Committee of the exchange.
Yes, all guidelines of the Prevention of Money Laundering Act (PMLA) are strictly required to be followed by the member/s while on-boarding a client on the India International Bullion Exchange IFSC ltd.
All bullion depositors of IIBX who wish to participate on the exchange needs to fill KYBD form as part of one time compliance before bringing the bullion into IFSC vaults. KYBD form is available on the exchange website.
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