On July 29 Prime Minister Narendra Modi launched India’s first bullion exchange, The India international Bullion exchange (IIBX), at Gujarat GIFT City (Gujarat International Finance Tec-City). India’s maiden International Financial Services Centre (IFSC) located between Ahmedabad and Gandhinagar.
The bullion exchange, which was announced in the 2020 Union Budget, has not only enrolled jewellers to trade on the exchange, but has also set up necessary infrastructure to store physical gold and silver. Qualified jewellers will be permitted to import gold through the IIBX. To Become Qualified jewellers, entitles requires a minimum net worth of Rs. 25 Crores and 90% of the average annual turnover in the last 3 years through deals in goods categorised as precious metals.
“For the first time in India, since the Liberalisation of gold imports through nominated banks and agencies in the 1990s, the eligible qualified jewellers in India, have been allowed to directly gold through IIBX”. An official said.
The IIBX will submit a report to IFSCA on a monthly basis providely detail of transaction in bullion by qualified jewellers, including details of products traded, quality, value and quality of gold imported etc. Currently there are 56 jewellers registered on the IIBX. This includes the likes of Titan company Ltd, Malabar gold Ltd, Bangalore Refinery Pvt Ltd, RBZ jewellers Pvt Ltd, Zaveri and company Pvt Ltd, Sanghi jewellers Pvt Ltd, imports are currently being undertaken at the IIBX.
The IIBX will allow jewellers to buy gold directly from international sellers by bypassing banks, it will help jewellers saving on the commission. This will benefit jewellers and they can pass these benefits to the consumers. Before the establishment of IIBX, gold was imported through banks and other designated agencies. The bank fixed the rate of gold on the basis of the rate received through COMEX. The jewellers had no say in the rate of gold but after the IIBX, any jewellers who has a turnover of Rs 25 crore can become a qualified jewellers and can register with IIBX and also can bid their own gold prices for the gold which they wish to buy through the IIBX.
