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

Rohan, a company secretary, advises a client on settlement currency on IIBX. The client assumes trades are in rupees and wants to hold bullion in a domestic Mumbai vault. Which advice matches the IIBX framework?

On IIBX, trades are priced and settled in US dollars, and the bullion is held in IFSC vaults run by empanelled vault managers. Qualified jewellers then import it into India from the IFSC, so rupee settlement or Mumbai storage is incorrect.

  1. ATrades are denominated and settled in US dollars, and bullion is held in IFSC-based vaults operated by empanelled vault managers, with import by qualified jewellers to the domestic tariff areaCorrect
  2. BTrades settle in rupees and bullion is stored in a Mumbai vault
  3. CTrades settle in euros and are stored in London
  4. DTrades settle in rupees but bullion is held in a foreign vault

Explanation

IIBX contracts are settled in US dollars and the bullion is held in vaults within the IFSC, from where qualified jewellers import into India. Rupee settlement and Mumbai storage are not features of the model.

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