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IIBX FAQ
Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins. Bullion can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.
The Government of India vide notification dated August 31, 2020, had notified the Bullion Spot Delivery Contract and Bullion Depository Receipt (BDR) with underlying Bullion as Financial Product and related services as Financial Services.
Vault means and includes any place of Storage where the Bullion traded on the Exchange are stored. All the Vaults in IFSC are approved by IFSCA.
A depository shall be approved by IFSCA and can be compared to a bank. A depository holds securities (like BDR etc.) of clients/Members in electronic form. Besides holding BDRs, a depository also provides services related to transactions.
India International Bullion Exchange IFSC Ltd (IIBX) is promoted by 5 Market Institutional Investor’s i.e., CDSL, India INX, NSDL, NSE and MCX.
International Financial Services Centres Authority (IFSCA) is the regulator of IIBX.
IIBX is India’s first International Bullion Exchange set up at the GIFT City, Gandhinagar. IIBX offers a diversified portfolio of products and technology services at a cost which is far more competitive than the Indian exchanges as well as other global exchanges in Hong Kong Singapore, Dubai, London and New York.
Following types of entities are eligible to become members of IIBX:
  • Non-Resident Individual / Proprietorship Firm
  • Registered Partnership Firm
  • Private Limited Company
  • Public Limited Company
  • Qualified Jewellers
  • IBU Branches at GIFT City
  • Foreign Bullion Suppliers who follow OECD guidelines
Following are the categories of Membership offered at IIBX
  • Trading Member (TM)
  • Trading Member and Self Clearing Member (TSM)
  • Trading-cum-Clearing Member (TCM)
  • Professional Clearing Member (PCM)
  • Limited Purpose Trading Member (LPTM)
All Indian entities who only clear and settles the trades of trading members (TM) of the Exchange and has no trading rights can become PCM at IIBX.
The same is available on IIBX website (kindly refer to below link).
https://www.iibx.co.in/static/networth.aspx
The same is available on IIBX website (kindly refer to below link).
https://www.iibx.co.in/download/circulars/20220531-1/20220531-1.pdf
A. As per RBI circular no. RBI/2022-23/62/ DoR.AUT.REC.41/ 24.01.001/2022-23 dated June 7, 2022, Branches of Indian Banks operating in GIFT-IFSC can act as Professional Clearing Member (PCM) of India International Bullion Exchange IFSC Limited (IIBX). The same is available on IIBX website (kindly refer to below link).
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12330&Mode=0
As per the below exchange circular (https://www.iibx.co.in/download/circulars/20220121-1/20220121-1.pdf), those Indian entities fulfilling the following conditions shall be considered as ‘Qualified Jewellers’ and shall be permitted to transact as trading members or clients of trading members, on IIBX, for the purpose of import of gold under the above-mentioned ITC(HS) codes:
  • a. The entity shall be engaged in the business of goods falling under ITS(HS) codes 7108, 7113, 7114 and 7118 under Chapter 71 of ITC(HS);
  • b. The entity must have filed due GST returns up to the preceding month prior to making an application to the IIBX. Further, a certificate should be submitted by the entity, duly attested by a practising-chartered accountant or a practising cost accountant or a practising company secretary, stating that 90% of the average annual turnover in the last 3 financial years are through dealing in goods under precious metals; and
  • c. The entity shall have a minimum net worth of 25 crore as per its latest audited financial statement.
Those entities who fulfil the criteria as described in pt. 10 above can apply for Qualified Jewellers (QJ) membership by getting in touch with the Exchange via https://www.iibx.co.in/markets/contactus.aspx
A QJ can become a Trading Member (TM) or a Limited Purpose Trading Member (LPTM) or a Client of existing Trading Member.
The requisite circular for the same is available on IIBX website (kindly refer to below link).
https://www.iibx.co.in/download/circulars/20220418-3/20220418-3.pdf
Kindly refer to the RBI circular no. RBI/2022-2023/57/A.P. (DIR Series) Circular No.04 dated May 25, 2022, and IIBX Circular no. 20220826-3 dated August 26,2022 for the same. Details are available on IIBX website.
https://www.iibx.co.in/download/circulars/20220826-3/20220826-3.pdf
Yes. All members of the IIBX have to open bullion depository account with India International Depository Limited (IIDL) at IFSC after complying with their KYC formalities.
Depositor will deposit bullion with the identified vault & Vault Manager shall ensure completion of the documentation. On verification , the depository may issue Bullion Depository Receipts in Dematerialize form with underlying bullion, bearing a unique BDR number. Units of these BDR will be credited to the account of the bullion depositor.
Exchange will give confirmation to the depository to extinguish the BDR as part of settlement post transacting on the IIBX. A Withdrawal message will relay electronically to the Vault Manager. On the extinguishment of BDR by depository, dematerialized balance of BDR will be reduced from Depositors account and credited to buyer’s demat account after settlement of the trade by the exchange.
After completing necessary documentation with the depository, vault charges and payment of customs duty, BDR would be converted into physical form.
Only Qualified Jewellers of IIBX can import Gold physically out of IFSC area into Domestic Tarif Area (DTA) area through the exchange.
Government of India has the provided following Tax incentives to IFSC units.
  • NIL Customs duty on Bullion Imports into GIFT SEZ
  • Nil Security Transaction Tax (STT)
  • Nil Commodity Transaction Tax (CTT)
  • Nil Dividend Distribution Tax (DDT)
  • Nil Long Term Capital Gain (LTCG)
  • Nil Short Term Capital Gain (STCG)
  • Nil Stamp duty
All contracts are listed, traded & settled on IIBX are in US Dollars.
Yes. IIBX will provide online trading platform to all exchange members.
Kindly refer the below link for list of products available to trade on IIBX platform:
https://www.iibx.co.in/static/spot.aspx
The clearing and settlement of trades executed on IIBX shall be cleared and settled as per the guidelines issued by International Financial Services Centres Authority (IFSCA) and as per the provisions of Rules, Byelaws and Regulations of the India International Bullion Exchange IFSC Limited as well as any other circulars/guidelines that may be issued in that respect from time to time.

The clearing and settlement shall be done on a multilateral netting basis as per the settlement obligations of the respective Clearing Members. The Clearing Members shall be responsible for all obligations, funds and bullion depository receipts, as well as the payment of margins, penalties, any other levies and settlement of obligations of the trades entered by them as trading members and also of those trading members and custodial participants, if any, for whom they have undertaken to settle as a Clearing Member.

As a set process all obligations in respect of trades entered by Trading Members will be transferred to the respective Clearing Members who have undertaken to act as Clearing Members for them.
All members participants have to ensure 100% Early pay-in before transacting on IIBX for T+0 contract
  • Buyers needs to have the entire order value funded as pay-in margin.
  • Seller needs to have the equivalent bullion order quantity as BDR pay-in margin.
Early pay-in is when you fulfil your settlement obligation (funds or securities) to the Exchange earlier than the designated due date/time for the particular settlement.
Currently in IIBX for T+0 contracts, 100% early pay in of funds is mandatory prior to placing a buy order and 100% early pay in of securities (BDR) is mandatory prior to placing a sell order on the exchange, which ensures NIL settlement risk involved while transacting through IIBX.

Kindly note that, IIBX accepts only US Dollar and BDR as collateral. Going forward when T+2 contracts shall be introduced on IIBX, Risk Management Controls would be prescribed by the Risk Committee of the exchange.
Yes, all guidelines of the Prevention of Money Laundering Act (PMLA) are strictly required to be followed by the member/s while on-boarding a client on the India International Bullion Exchange IFSC ltd.
All bullion depositors of IIBX who wish to participate on the exchange needs to fill KYBD form as part of one time compliance before bringing the bullion into IFSC vaults. KYBD form is available on the exchange website.
Applicants can enrol with IIBX in any of the below mentioned categories with IIBX subject to fulfilment of eligibility criteria as specified by IFSCA and Exchange from time to time:
  • Qualified Jeweller (Client/Special Category Client)
  • Qualified Supplier (Client/Special Category Client)
  • India UAE Valid TRQ Holder
  • Trading Member/Clearing Member
  • Special Category Client (Nominated Bank)
Applicants can submit their application for enrolment with IIBX on the Online Membership portal. The application form along with the supporting documents need to be submitted on the online Membership Portal.
The format of the application and checklist of documents to be submitted for respective category is available on the Exchange website (https://iibx.co.in/)
Yes, applicants need to fulfil the eligibility criteria as specified by IFSCA, IIBX or any other regulatory for enrolment to respective category. For details related to the eligibility criteria, applicants need to refer to the circulars issued by IIBX from time to time.
The list of existing Trading Members, Clearing Members and other market participants are available on IIBX website in “Membership” and “Market Participants” sections.
The holiday calendar followed by IIBX is published on its website. Please refer to
https://www.iibx.co.in/static/trading_holidays.aspx
The IIBX Trading Timings for T+0 contracts is 9.00 am to 6.30 pm, whereas for Futures contracts is 9.00 am to 11.30 pm. Please refer to the Product specifications for more details about various timings.
https://www.iibx.co.in/static/gold995_specifications.aspx
The closing Price are published on IIBX website at the end of each Trading day. Please refer to https://www.iibx.co.in/markets/dailymarketdata.aspx for the close price for T+0 contracts.
The T+0 contracts traded at IIBX have 100% margin i.e. the full amount has to be paid by the buyer and full BDR Pay-in has to be made by the Seller before putting the buy or sell order respectively. For Futures contract, the VaR based margins are used.
Yes. Each BDR contains the creation date.
Yes. Each BDR holds the complete details like ISIIN, purity, weight and the unique serial number of the bar. Please note that there is one to one congruence between the BDRs and the bullion deposited in vaults.
The BDRs are issued by India International Depository IFSC Ltd, which acts as a depository for the trades executed on the Exchange platform. Please refer to their website www.iidi.co.in
The settlement cycle is not associated with the BDRs. The BDRs are given as early pay-in for Qualified Supplier to put his offer on IIBX trading platform. BDRs are settled every 30 minutes on the clock once the units of BDRs are traded on the platform. At present for the T+0 contracts have BDRs settlement following 30 minutes cycle. As BDRs are security, the BDRs can also be used to meet delivery obligations post intention matching in the Futures contracts traded at IIBX.
The BDR is a security representing the value of Bullion, 1 kg gold 995 purity, 100 gm gold 999 purity, 20 kg silver grains and 30 kg silver bars (with weight variation tolerance permitted). Once BDR is bought, the seller gets equivalent US Dollar of the per oz price traded on IIBX platform.
The BDR is a security representing the value of Bullion, 1 kg gold 995 purity, 100 gm gold 999 purity, 20 kg silver grains and 30 kg silver bars (with weight variation tolerance permitted). For Silver Bars, there is weight variation in the bars, and the BDR contains the actual weight of the bar which can be between 28 kg to 33 kg. However, on the Trading platform of IIBX the trade takes place in the 30 Kg units but settled for actual weight of the bars.
Yes, BDR can be treated as security. BDR is a security under Securities Contract Regulation Act.
Currently, the Closing / Traded prices are not published on Reuters / Bloomberg terminals. They are published on NSE Cogencis terminal. Further, they are also available for download from IIBX website.
The details of the documents for onboarding with IIDI is available on weblink https://www.iidi.co.in/ under tab of “Bullion Depository Services” sub tabs “Client” and “Member”.
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