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IFSCA chief launches pilot run of International Bullion Exchange; to go live on Oct 1

IFSCA chief launches pilot run of International Bullion Exchange; to go live on Oct 1

The Finance Ministry says the International Bullion Exchange will be 'Gateway for Bullion Imports into India', wherein all bullion imports for domestic consumption will be channelised through the exchange

The government says it has taken steps to notify bullion spot trading and bullion depository receipts, underlying bullion as financial products and bullion related services as financial services The government says it has taken steps to notify bullion spot trading and bullion depository receipts, underlying bullion as financial products and bullion related services as financial services

International Financial Services Centres Authority (IFSCA) chairperson Injeti Srinivas launched the pilot run for the International Bullion Exchange today, which will go live on October 1, 2021, the Foundation Day of IFSCA.

The IFSCA (Bullion Exchange) Regulations, 2020, were notified on December 11, 2020, which among other things, cover the Bullion Exchange, Clearing Corporation, Depository and Vaults.

The government has taken steps to notify bullion spot trading and bullion depository receipts, underlying bullion as financial products and bullion related services as financial services.

The International Bullion Exchange will be the "Gateway for Bullion Imports into India", wherein all the bullion imports for domestic consumption will be channelised through the exchange.

"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," a Finance Ministry statement said.

After an MoU between the 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), Central Depository Services (India) Limited (CDSL), the holding company India International Bullion Holding IFSC Ltd (IIBH) has been created for setting up and operationalising International Bullion Exchange, Bullion Clearing Corporation and Bullion Depository in IFSC, GIFT City.

The IFSCA has approved the application by the holding company for setting up the International Bullion Exchange through the subsidiary of the holding company 'India International Bullion Exchange IFSC Ltd', holding the Bullion Exchange and the Bullion Clearing Corporation. CDSL-IFSC, a foreign depository, has been designated as the Bullion Depository for the Bullion Exchange responsible for managing the Vault Manager.

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