CS Professional · IFSCA - Regulations, Listing and Compliances · India International Bullion Exchange (IIBX)
Meera Gold Pvt. Ltd. holds physical gold in a vault in GIFT IFSC and wants a tradable instrument representing that gold on IIBX without moving it. Which instrument fits the IFSCA bullion framework?
The fitting instrument is a bullion depository receipt. It is issued against bullion deposited with a vault manager in IFSC and represents ownership of that physical bullion, allowing trading on IIBX without moving the metal. Equity shares, debentures or warrants do not represent the deposited gold.
- ABullion depository receipt issued against bullion deposited with a vault managerCorrect
- BEquity share of the exchange
- CNon-convertible debenture of the vault
- DWarrant issued by the clearing corporation
Explanation
A bullion depository receipt represents underlying bullion held by a custodian or vault manager and can be traded on the exchange. Shares, debentures or warrants are different securities not representing the deposited gold.
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