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

Meera Metals, a trading member of IIBX, sells bullion to a buyer, and delivery is to take place at a vault in GIFT IFSC. Which compliance feature of the IIBX settlement process is correct?

On IIBX, bullion is held in IFSCA-registered vaults and represented by electronic Vault Receipts issued by the vault manager. Settlement and delivery occur against these receipts through the clearing corporation, not through bilateral physical handovers or shipment on trade day.

  1. ADelivery is made outside the exchange through bilateral physical handover at the seller's premises
  2. BSettlement happens through a vault manager issuing electronic receipts, and delivery is against Vault Receipts held by the clearing corporation systemCorrect
  3. CSettlement requires physical bars to be shipped to the buyer's office on trade day
  4. DSettlement is done only in rupees with no role for any vault

Explanation

IIBX trades are in bullion represented by electronic Vault Receipts issued by IFSCA-registered vault managers, with settlement through the clearing corporation. Bilateral physical handover bypasses this structure, so that option is wrong.

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