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

Kiran Gems, an Indian jeweller, buys gold on IIBX in the form of Gold Depository Receipts or physical gold. Which feature of the IIBX framework supports a buyer who wants to hold bullion without taking immediate physical delivery?

IIBX supports vaulting arrangements in the IFSC under which bullion can be held through depository receipt style instruments and delivered physically on demand. There is no forced melting, one-day holding limit or compulsory rupee conversion in the framework.

  1. AMandatory immediate melting of bullion at the buyer's premises
  2. BVaulting arrangements in the IFSC that allow bullion to be held through depository receipt style instruments, with delivery on demandCorrect
  3. CProhibition on any holding of bullion beyond one trading day
  4. DCompulsory conversion of all holdings into rupee deposits

Explanation

IIBX works with vault managers and a depository mechanism so holdings can be kept in the IFSC vault and later withdrawn as physical bullion. Forced melting, one-day limits and rupee conversion are not features of the framework.

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