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

Suryam Jewels Pvt Ltd, a jeweller in Surat, is a Trading Member-cum-Client of the India International Bullion Exchange (IIBX) and has bought gold on the exchange. Where is the bullion physically held until the buyer takes delivery for import into the Domestic Tariff Area (DTA)?

Bullion traded on IIBX is held in vaults operated by IFSCA-registered Vault Managers inside GIFT IFSC. The buyer holds electronic vault receipts, and physical delivery for import into the DTA is taken from that vault, not from the buyer's premises, RBI or any port warehouse.

  1. AIn the buyer's own factory premises in Surat
  2. BIn a vault of a Vault Manager within GIFT IFSC, which is treated as a notified special economic zone areaCorrect
  3. CIn the Reserve Bank of India's currency chests
  4. DIn a bonded warehouse at Mumbai port chosen by the buyer

Explanation

On IIBX, bullion is deposited and held in IFSCA-registered vaults of Vault Managers located within GIFT IFSC. The buyer receives a vault receipt and takes physical delivery from the vault, so import to the DTA begins there. The other locations are not part of the IIBX settlement structure.

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