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

Ridhi Ornaments wants physical gold delivered against its holdings on IIBX. Which entity is responsible for safekeeping the physical bullion and delivering it on redemption?

The vault manager is responsible for safekeeping physical bullion and delivering it when receipts are redeemed. IFSCA only regulates, and trading members or listing departments do not act as custodians of the underlying bullion in the exchange framework.

  1. AThe vault manager, operating the vault where the bullion is storedCorrect
  2. BThe trading member's sales team
  3. CThe IFSCA itself, holding bullion in its own treasury
  4. DThe stock exchange's listing department

Explanation

The vault manager stores the physical bullion and handles deposit and delivery against receipts. IFSCA is a regulator and does not hold bullion, and trading members or listing departments do not act as custodians.

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