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

Rohan, a company secretary, advises a client planning to be a participant on IIBX. The client asks which statement correctly reflects how the IIBX ecosystem is structured. Which is correct?

The IIBX ecosystem has separate institutions: the exchange for trading, a clearing corporation for settlement, a depository for receipts, vault managers for storage and trading and clearing members. Functions are not merged in one body, and customs does not settle trades.

  1. AThe exchange alone performs trading, clearing, vaulting and assaying without any other institution
  2. BThe ecosystem comprises the exchange, a clearing corporation, depository, vault managers and trading and clearing members, each performing separate functionsCorrect
  3. COnly banks may operate any role, and non-bank entities are barred from all roles
  4. DSettlement is performed directly by the Customs Department of India

Explanation

The IIBX framework separates functions: exchange for trading, clearing corporation for clearing and settlement, depository for receipts, vault managers for storage, and members for dealing. The other options wrongly concentrate functions or exclude non-banks.

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