Now the danka of Gujarat will play; International Bullion Exchange will start in GIFT City today, PM Modi will inaugurate

Prime Minister Narendra Modi envisioned in 2017 that over the next 10 years, GIFT City would become the price setter for at least some of the world’s largest commercial instruments, be it commodities, currencies, equities, interest rates or any other financial instrument. be. IFSCA aims to develop a bullion ecosystem, which will enable India to be recognized as a value influencer and value setter in international markets.

India is one of the largest importers with an annual gold demand of around 1,000 tonnes. Despite being the largest consumer of gold, India plays a limited role in the determination of gold prices internationally. Hence the Prime Minister dreamed of setting up the India International Bullion Exchange (IIBX), which is taking shape as a de facto organization today. Reforms to develop the bullion ecosystem in International Financial Services Centers (IFSCs) include transition to an organized market, imports by local jewellers, vaulting facilities for gold storage in IFSC, monetization of gold, etc.

Additionally, IFSCA has ensured the integrity of the sources of bullion delivered by IIBX by mandating compliance with OECD Due Diligence Guidance for responsible supply chains of minerals from conflict-affected and high-risk areas.

Under the amendments made after 1990, eligible jewelers, including nominated banks and agencies, are allowed to import gold directly through IIBX as per the norms prescribed by IFSCA. Thus, allowing direct participation of jewelers is an important aspect of this amendment.

A storage capacity of about 125 tonnes for gold and up to 1,000 tonnes for silver will be set up at GIFT CT-IFSC. Further any entity in SEZ which is permitted to store bullion for trading on IIBX spot delivery contract and issue BDR bullion shall be recognized as a unit in IFSC. The storage facilities at all the major bullion centers in India will act as the IIBX trading hub at GIFT-IFSC to supply bullion to jewelery manufacturers and exporters across the country.

IFSCA has already provided a regulatory framework to monetize gold for products such as gold and silver ETFs, which will encourage participation in IIBX by various investors. GIFT-IFSC will emerge as a hub for activities like Bullion Leasing for various gold related products, Gold Loans, Lending Against BDRs, Project Financing for DOOR (raw gold) and Gold Savings Accounts / Gold Accumulation Schemes etc.

In 2018, NITI Aayog, in a comprehensive study on the transformation of the gold market, recommended that the Indian government initially set up a bullion exchange in GIFT-IFSC as an additional option to select a place for trading. to be the primary mediator for Global market participants and all can think of gold import and export.

Also in the Union Budget 2018-19, the then Finance Minister Late Shri Arun Jaitley announced that the government would set up a unified regulatory body to oversee all financial services in International Financial Services Centers (IFSCs). This paved the way for the establishment of the International Financial Services Centers Authority (IFSCA), a unified regulator for the development and regulation of financial products, financial services and financial institutions in IFSCs in India.

In the Union Budget 2020-21, Finance Minister Shri Nirmala Sitharaman announced the setting up of an International Bullion Exchange in IFSC at GIFT City.

4 December Inspired by the vision of Prime Minister Narendra Bhai Modi, ordered under the budget announcement. On 2020, rules were framed under the IFSCA (Bullion Exchange) Regulations, 2020, which paved the way for the incorporation of a Bullion Clearing Corporation by a consortium of bullion exchanges and five leading Indian Market Infrastructure Institutions (MIIs).

India International Bullion Exchange (IIBX), the first International Bullion Exchange in GIFT-IFSC and only the third exchange of its kind in the world, Central Depository Services (India) Limited (CDSL), India INX International Exchange (IFSC) Limited (India INX) Established by a consortium of Multi Commodity Exchange of India Limited (MCX), National Securities Depository Limited (NSDL) and National Stock Exchange of India Limited (NSE). These exchanges are regulated under the supervision of IFSCA.