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CS Professional · IFSCA - Regulations, Listing and Compliances · India International Bullion Exchange (IIBX)

Kaveri Jewels, a jeweller in Surat, wants to import gold through GIFT IFSC. It is told that physical gold is traded on India International Bullion Exchange (IIBX) in a particular form of instrument rather than as a plain spot contract in loose bars. Which instrument is actually traded on IIBX for standardised gold and silver?

The instrument traded is the Bullion Depository Receipt, which represents physical standardised bullion held in a vault. Trading is therefore in a receipt backed by actual metal, not in equity shares, exchange-issued bonds or purely cash-settled derivatives.

  1. ABullion Depository Receipts (BDRs) backed by physical bullion held in a vaultCorrect
  2. BExchange-traded equity shares of vault operators
  3. CUnsecured bullion bonds issued by the exchange
  4. DGold futures settled only in cash

Explanation

IIBX provides a platform for trading of standardised bullion in the form of Bullion Depository Receipts, each representing underlying physical bullion held with a vault manager. Cash-settled futures or equity shares are not the traded instruments, and the exchange does not issue bonds.

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