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

Suvarna Jewels Pvt Ltd, a jewellery manufacturer in Surat, wants to import gold through the India International Bullion Exchange at GIFT IFSC. It is not a trading member itself. Which route is available to it for buying on the exchange?

Suvarna Jewels can buy bullion on IIBX as a client of a trading member. The exchange operates through a member-based structure, so participants who are not members access trading and settlement through a trading member and its clearing arrangements, rather than dealing directly with the exchange.

  1. ATrade only through a trading member, acting as a client of that memberCorrect
  2. BBuy directly from the exchange's clearing corporation without any member
  3. CTrade only if it first becomes a stock exchange in an IFSC
  4. DBuy only through the RBI as an agent bank

Explanation

On IIBX, trading is conducted through members. An entity that is not itself a member, such as a jewellery manufacturer, deals as a client of a trading member. The exchange and clearing corporation do not deal directly with non-members, and becoming an exchange is not a requirement for buyers.

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