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

Kiran Traders wants to buy bullion on IIBX but is not itself a member of the exchange. It wants to trade through a person who is. Which describes the arrangement correctly under the IFSCA bullion framework?

Kiran Traders may trade through a trading member of the exchange acting as its intermediary, because access to IIBX is through members. It cannot place orders directly without a member, and it need not become a clearing corporation or use the RBI to buy bullion.

  1. AIt may trade through a trading member of the exchange acting as intermediary, as exchange access is via membersCorrect
  2. BIt can place orders directly on the exchange without any member
  3. CIt must become the clearing corporation first
  4. DOnly RBI can place orders on its behalf

Explanation

Trading on the exchange is done through its members, who can act for clients, and clearing is through clearing members. Direct access without a member is not the model, and becoming a clearing corporation is not required for clients.

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