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

Kiran Bullion Pvt Ltd wishes to trade on IIBX as a member for its own account and for clients, and also wants a clearing role. Which statement best describes the IIBX framework that applies to Kiran Bullion?

IIBX trades through its trading members, while clearing and settlement is handled by its dedicated clearing corporation, India International Clearing Corporation (IFSC) Limited. Settlement is not bilateral and does not go through NSE Clearing, and membership is not limited to banks.

  1. ATrading is on IIBX with trading members, and clearing is carried out through the exchange's associated clearing corporation, India International Clearing CorporationCorrect
  2. BTrading members settle trades bilaterally and no clearing corporation is involved
  3. CClearing is done by the NSE Clearing Limited
  4. DOnly banks can ever act as members; bullion dealers cannot

Explanation

IIBX works with a dedicated clearing corporation, India International Clearing Corporation (IFSC) Ltd, for clearing and settlement. Bilateral settlement and NSE Clearing are not the framework. Non-bank entities such as qualified jewellers and dealers can participate through the prescribed categories.

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