In News: Prime Minister of India launched the India International Bullion Exchange (IIBX), India’s first International Bullion Exchange, and NSE IFSC-SGX Connect.
- India is the world’s second biggest consumer of gold and the move to set up the IIBX is seen as India’s effort to bring transparency to the market for the precious metal.
- Setting up of IIBX could lead to standard gold pricing in the country and make it easier for small bullion dealers and jewellers to trade in the precious metal.
India International Bullion Exchange (IIBX)
- It is a platform that not only enrols jewellers to trade on the exchange, but has also set up necessary infrastructure to store physical gold and silver.
- IIBX will facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialisation of gold in India.
- IFSCA is entrusted with notifying the eligible qualified jewellers in India for directly importing gold through IIBX.
International Financial Services Centers Authority (IFSCA)
- PM also laid foundation stone of the headquarters building of the International Financial Services Centers Authority (IFSCA) in GIFT City, Gandhinagar.
- The IFSCA works as a unified authority for the development and regulation of financial products, financial services and financial institutions at the IFSC at GIFT city in Gandhinagar.
NSE IFSC-SGX Connect
- It is a framework between NSE’s subsidiary in the GIFT International Financial Services Centre (IFSC) and Singapore Exchange Limited (SGX).
- Under Connect, all orders on NIFTY derivatives placed by members of Singapore Exchange will be routed to and matched on the NSE-IFSC order matching and trading platform.
- Broker-Dealers from India and across international jurisdictions are expected to participate in large numbers for trading derivatives through Connect.
- It will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem in the GIFT-IFSC.
- GIFT (Gujarat International Finance Tec-City) City is located in Gandhinagar, Gujarat.
- It consists of a multi-service Special Economic Zone (SEZ), which houses India’s first International Financial Services Centre (IFSC) and an exclusive Domestic Tariff Area (DTA).
- GIFT city (Gujarat International Finance Tec-City) is envisaged as an integrated hub for financial and technology services not just for India but for the world.
International Financial Services Centres Authority
- It was established in April 2020 under the International Financial Services Centres Authority Act, 2019.
- It is headquartered at GIFT City, Gandhinagar in Gujarat.
- The Authority shall regulate all such financial services, financial products and Financial Institutions in an IFSC.
- It may also recommend to the Central Government such other financial products, financial services and financial institutions which may be permitted in the IFSCs.
- All powers exercisable by the respective financial sector regulatory (viz. Reserve Bank of India, Securities and Exchange Board of India, IRDAI, etc.) under the respective Acts shall be solely exercised by the Authority in the IFSCs in so far as the regulation of financial products, financial services and FIs that are permitted in the IFSC are concerned.
Previous Year Question
Q.1) Consider the following statements: (2022)
- In India, credit rating agencies are regulated by Reserve Bank of India.
- The rating agency popularly known as ICRA is a public limited company.
- Brickwork Rating is an Indian credit rating agency.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3