International Bullion Exchange (IBX) at GIFT City – Complete Guide

Last Updated on: 30th June 2025, 02:55 pm

Introduction to IBX at GIFT City

What is the International Bullion Exchange (IBX)?

The International Bullion Exchange (IBX) is India’s pioneering platform for trading physical gold and silver. Located at GIFT City, Gandhinagar, this exchange is designed to offer an efficient, transparent, and seamless trading experience for bullion dealers, jewellers, and institutional investors. IBX plays a crucial role in providing a well-regulated marketplace for gold and silver transactions, focusing on:

• Efficient Price Discovery: Ensures that market prices reflect fair value through transparent and competitive trading.
• Responsible Sourcing: Guarantees that the bullion traded on the exchange adheres to ethical sourcing standards, supporting sustainable practices.
• High-Quality Bullion Trading: Facilitates the buying and selling of high-purity gold and silver, meeting international quality standards.

IBX enables direct imports of gold, allowing TRQ holders to bypass intermediaries, thus eliminating additional costs and delays. The TRQ Gold import process offers a reduced 5% customs duty and removes the need for blocking a 1% customs duty bond. This provides a seamless, cost-effective way to import bullion.

The IBX Ecosystem serves as a centralized hub for bullion trading in India, enhancing the ease of gold and silver imports and exports, while also positioning India to become a significant player in global bullion markets.

Significance of IBX for India and Global Bullion Trade

India is the second-largest consumer of gold globally, making its bullion market one of the most influential in the world. Despite its high consumption, India has historically lacked control over global bullion price setting. The launch of IBX addresses this challenge and enables India to:

• Position India as a Price Setter: By facilitating direct trading of bullion, IBX allows India to influence global gold and silver prices, rather than relying on international exchanges.
• Enhance Global Market Integration: IBX connects India to the global bullion market, enabling international traders and institutional investors to directly participate in Indian bullion trade, thus increasing liquidity and market depth.
• Boosting India’s Role in Global Bullion Trade: IBX provides India with a strategic advantage in bullion trading, reinforcing its position as a global leader in the precious metals market.

IBX further strengthens India’s position by offering TRQ holders the ability to import gold directly without intermediary steps, exempted from the IGCR rule, and only paying 5% customs duty instead of the regular rate. This unique benefit enhances India’s role in the global bullion market.

IBX’s integration into the global trading system is an essential step in India’s aspiration to be a key player in global bullion markets. With a platform that offers transparency and integrity, it stands as a pivotal milestone in India’s journey toward becoming a global bullion hub.

Overview of GIFT City and Its Role in IBX

GIFT City, short for Gujarat International Finance Tec-City, is a state-of-the-art financial district located in Gandhinagar, Gujarat. It serves as the foundation for India’s first International Financial Services Centre (IFSC). This strategic location hosts several financial institutions, including IBX, and offers a range of benefits:

• Hub for Financial Services: GIFT City is designed to be a global financial services hub, attracting investors, traders, and financial institutions worldwide.
• International Standards: GIFT City is built with world-class infrastructure that adheres to international standards, providing an optimal environment for IBX to operate and grow.
• Seamless Regulatory Environment: The IFSCA (International Financial Services Centres Authority) regulates all operations within GIFT City, ensuring smooth operations for IBX participants and fostering trust among global investors.

The International Financial Services Centres Authority (IFSCA) regulates IBX registration process, ensuring that only qualified jewelers and registered IFSCA entities can import bullion directly through IBX. The IFSCA’s streamlined processes support both market participants and customs clearance, enabling smoother bullion imports. The strategic location, combined with advanced infrastructure, makes it an ideal place for IBX to lead India’s bullion trading sector and integrate seamlessly with global financial markets.

Role of IFSCA in Regulating IBX at GIFT City

What is IFSCA and Its Regulatory Role for IBX?

The International Financial Services Centres Authority (IFSCA) is the primary regulatory body overseeing operations within International Financial Services Centres (IFSCs) in India, including IBX at GIFT City. IFSCA ensures that all financial activities conducted in IFSCs adhere to global standards of transparency, security, and efficiency. Its role in regulating IBX is pivotal for maintaining the credibility and smooth functioning of the exchange.

Key responsibilities of IFSCA in regulating IBX include:

• Ensuring Compliance: IFSCA ensures that IBX and its participants comply with all applicable regulations related to gold and silver trading, customs duties, and taxation.
• Market Efficiency: The authority monitors the exchange to ensure that trading practices are efficient, transparent, and free from manipulation.
• Promoting Responsible Trading: IFSCA enforces strict guidelines on responsible sourcing of bullion, ensuring that the precious metals traded on IBX meet international ethical standards.

IFSCA’s regulatory framework provides confidence to investors and market participants, ensuring that all activities on IBX are fair, secure, and compliant with global financial practices.

GIFT City as a Hub for Financial Services

Financial and Tech Services Hub: A Global Financial Center

GIFT City (Gujarat International Finance Tec-City) is India’s flagship project to develop an integrated global financial services hub. Designed with state-of-the-art infrastructure, GIFT City is set to become a central player in the global financial landscape by hosting India’s first International Financial Services Centre (IFSC), where IBX operates. This strategic location offers a wide range of services, including finance, banking, insurance, and technology, making it an attractive destination for international investors and businesses.

Key Features of GIFT City as a Financial Services Hub:

• Multi-Service SEZ: GIFT City is a Special Economic Zone (SEZ) that offers a one-stop solution for all financial services, from banking to fintech, enabling smooth and cost-efficient operations for entities like IBX.
• World-Class Infrastructure: GIFT City is equipped with high-quality infrastructure that supports the needs of global businesses, including financial institutions and technology firms.
• Regulated by IFSCA: The IFSCA regulates all entities operating in GIFT City, ensuring adherence to international standards and fostering investor confidence.

GIFT City’s Role in IBX Growth

• Enhanced Connectivity: GIFT City’s strategic location makes it an ideal gateway for global bullion trading, helping IBX attract international participants and bullion traders.
• Global Financial Integration: As a hub for international financial services, GIFT City facilitates the integration of India’s bullion market with global financial systems, allowing foreign traders to easily engage with Indian bullion markets through IBX.
  

The Launch of IBX: A Game Changer for India’s Bullion Market

Prime Minister’s Launch of IBX

On July 29, 2022, the Prime Minister of India officially launched the India International Bullion Exchange (IBX), marking a transformative step in the country’s bullion market. This initiative aims to streamline the gold and silver trading process, empower qualified jewellers, and position India as a more influential player in the global bullion market.

The launch of IBX reflects India’s vision of becoming a key player in setting global bullion prices while addressing the long-standing challenges in the import and export of bullion. The IBX platform provides a regulated marketplace for bullion trading, offering transparency and efficiency. 

As part of the TRQ onboarding process, IBX simplifies bullion imports through the Customs EDI Gateway (ICEGATE), and qualified entities can avail direct imports. Custom House Agents (CHA) can assist with the customs clearance, ensuring compliance with GST regulations and reducing time delays.

Key Benefits for Bullion Dealers and Qualified Jewellers

The India International Bullion Exchange (IBX) provides a range of benefits that make it an ideal platform for bullion dealers and qualified jewellers. From transparent pricing to flexible trading options, IBX empowers market participants to operate more efficiently in the bullion market.

1. Direct Import of Bullion

Before the introduction of IBX, qualified jewellers had to rely on intermediaries for bullion imports, which often led to higher costs and delays. With IBX, qualified jewellers can now directly import bullion, streamlining the process and reducing reliance on middlemen.

• Faster Import Process: Jewellers can now directly source gold and silver from international suppliers.
• Cost-Effective: Eliminates intermediaries, lowering the overall cost of imports.
• Ethical Sourcing: Ensures that the bullion is sourced responsibly, in line with global OECD Due Diligence Guidance.
  

2. Enhanced Trading Opportunities

IBX provides bullion dealers and qualified jewellers with the ability to trade on a globally recognized platform, with the added advantage of competitive pricing.

• Global Exposure: IBX connects Indian traders with global market participants, offering access to international pricing and liquidity.
• Increased Trading Flexibility: Dealers can now trade in a range of gold and silver products that meet international standards.
• Access to Competitive Rates: IBX offers pricing that is competitive with other international exchanges, providing an opportunity for better trading margins.
  

3. Transparency and Compliance

IBX operates with full regulatory oversight by IFSCA, ensuring that all transactions are conducted transparently and in compliance with international financial and regulatory standards.

• Secure Transactions: Ensures that bullion transactions are safe and meet regulatory requirements.
• Price Transparency: Facilitates fair price discovery through competitive and transparent market pricing.
  

Future Prospects of IBX in the Global Bullion Market

1. Fostering Price Discovery

As India’s first International Bullion Exchange, IBX plays a crucial role in enabling price discovery for gold and silver traded within India. By offering a transparent and accessible platform for international and domestic traders, IBX helps in setting fair market prices that reflect global demand and supply dynamics.

• Market Liquidity: By connecting domestic and global buyers and sellers, IBX increases the liquidity in India’s bullion market.
• Competitive Pricing: With the integration of international markets, IBX ensures that India can influence global bullion pricing.
  

2. New Investment Opportunities

IBX opens the door to new investment opportunities for investors, dealers, and jewellers, both domestically and internationally. The platform enables access to gold and silver trading in various contract sizes and forms, offering flexibility for different types of investors.

• Investment in Bullion Financial Products: Investors can engage in a variety of financial products related to precious metals.
• Global Participation: IBX attracts international investors, providing them with direct access to India’s bullion market.
  

3. A Hub for International Bullion Trading

IBX has the potential to become a global hub for bullion trading, bringing together traders and investors from around the world. This will help strengthen India’s position in the global bullion market, with GIFT City serving as a strategic location for global bullion trade.

How Does IBX Work?

The India International Bullion Exchange (IBX) simplifies the process of trading gold and silver by providing a transparent and efficient platform. To import bullion, TRQ holders must be registered with IFSCA, complete their ICEGATE registration, and work with Custom House Agents (CHA) for smooth customs processing. Additionally, IBX ensures that fund transfers to the clearing system are seamless, providing an efficient trading environment. Below is a clear step-by-step guide on how IBX works, from setting up accounts to executing trades.

The Process Flow for Trading on IBX

Step 1: Open a Trading Account

To start trading on IBX, the first step is to open a trading account with any registered trading member authorized by the exchange. This account will provide you with access to the IBX platform.

• Requirements: Complete KYC (Know Your Customer) formalities and submit identification documents.
• Purpose: The trading account gives you the ability to place buy and sell orders on the IBX platform.
  

Step 2: Open a Demat Account with IIDI (India International Depository IFSC Limited)

After setting up your trading account, the next step is to open a Demat account with IIDI (India International Depository IFSC Limited). This account will hold your Bullion Depository Receipts (BDRs), which represent the gold and silver traded on IBX.

• Requirements: Provide your personal details and KYC documents to IIDI.
• Purpose: The Demat account securely holds your BDRs, which are linked to the physical bullion stored in authorized vaults.
  

Step 3: Transfer Funds and Initiate Trade

Once your accounts are set up, you need to transfer funds into the IBX clearing system through an AD Bank which will issue Bullion Depository receipts. This ensures that you have the necessary capital for buying bullion.

• How it Works: Transfer funds from your bank to AD Bank and deposit Bullion Depository Receipts with IBX account.
• Purpose: To purchase gold and silver contracts on the IBX platform.
  

Step 4: Trade on the IBX Platform for Buying/Selling Bullion

With funds in your account, you can now start trading on the IBX platform. Place buy or sell orders for gold and silver at competitive market prices.

• What You Need: Monitor the market, place buy/sell orders, and execute trades based on market conditions.
• Purpose: To trade bullion efficiently through a transparent and competitive marketplace.
  

Key Players in IBX – Qualified Jewellers, TRQ Holders, and More

1. Qualified Jewellers

Qualified Jewellers are key participants in the IBX ecosystem. These entities, with a minimum net worth of ₹25 Crores, deal in precious metals and are eligible to directly trade bullion on the IBX platform.

• Eligibility Criteria:
  • Net Worth: ₹25 Crores.
  • Focus on Precious Metals: Must deal primarily in gold and silver.
  • Role: Qualified jewellers can directly import bullion and trade on IBX, eliminating the need for intermediaries.
    

2. TRQ Holders

TRQ Holders (Tariff Rate Quota Holders) are entities that can directly import gold through IBX. They are crucial for facilitating bullion imports into India.

• Eligibility Criteria:
  • Registered with IFSCA: Entities must meet regulatory requirements set by the International Financial Services Centres Authority (IFSCA).
• Role: TRQ holders enable the direct import of gold, streamlining the entire process.
  

Advantages of IBX for Bullion Dealers and Qualified Jewellers

The India International Bullion Exchange (IBX) offers numerous advantages to bullion dealers and qualified jewellers. By providing a transparent, regulated platform, IBX is reshaping the way gold and silver are traded in India and beyond. Below are the key benefits that make IBX an attractive option for market participants.

1. Lower Transaction Costs

One of the most significant advantages of trading on IBX is the lower transaction costs compared to other global exchanges. Traditional bullion markets often involve high fees for intermediaries, customs, and trading. IBX eliminates many of these intermediaries, providing a cost-effective solution for dealers and jewellers. By eliminating intermediaries and offering direct bullion imports through the TRQ Gold process, IBX drastically reduces transaction costs. The 5% customs duty and removal of the 1% bond requirement further lower overall import costs, allowing dealers and jewellers to improve profitability.

• Affordable Trading: No middlemen, meaning lower commission fees and cheaper transaction costs.
• Competitive Edge: Bullion dealers and jewellers can save money on each trade, increasing their overall profitability.

By offering cost-effective trading, IBX enables market participants to trade bullion more efficiently and at competitive rates.

2. Longer Trading Hours

IBX provides extended trading hours compared to many global bullion exchanges. This feature allows dealers and jewellers more flexibility in executing trades, especially for those dealing across different time zones.

• Flexible Trading Schedule: With longer market hours, IBX accommodates a wider range of trading strategies, including intraday trading and global market reactions.
• 24/7 Access: Traders can buy and sell bullion at any time within the platform’s operating hours, allowing them to respond quickly to market changes and global events.

These extended hours make IBX an ideal platform for traders looking for more flexibility in their trading strategies.

3. Quality Assurance

All bullion traded on IBX meets stringent international standards for quality assurance. IBX adheres to the OECD Due Diligence Guidance, ensuring that all gold and silver traded through the exchange come from responsible, conflict-free sources.

• OECD Standards: IBX guarantees that the bullion traded on the platform is sourced in line with international ethical standards.
• Transparency and Trust: Buyers and sellers can trust that the metals they trade are of the highest quality, which is crucial in maintaining market integrity.

This focus on quality assurance enhances the credibility of IBX and provides confidence to market participants.

4. Reliable Operational Standards

IBX ensures that all transactions are conducted under high operational standards. The exchange platform is built with security, efficiency, and transparency in mind, making it a reliable marketplace for bullion traders.

• High Security: IBX uses state-of-the-art security measures to protect both user information and funds.
• Efficient Operations: The platform is designed to handle high volumes of transactions, ensuring quick and reliable order execution.
• Regulatory Oversight: As IBX operates under the supervision of IFSCA, it ensures compliance with Indian and international regulations, enhancing trust among market participants.

With secure and reliable operations, IBX ensures that traders can focus on maximizing profits without worrying about the integrity of the platform.

IBX Products and Trading Mechanism

The India International Bullion Exchange (IBX) offers a variety of bullion contracts and a streamlined trading mechanism designed to facilitate efficient and transparent trading of gold and silver. Below is a breakdown of the available products, market hours, and settlement types on IBX.

Gold Contracts Available on IBX

IBX offers several types of gold contracts to cater to the diverse needs of traders, jewellers, and investors. These contracts provide flexibility and competitive pricing, helping market participants make informed decisions.

Available Gold Contracts:

• GOLD 995 T+0: A standard gold contract for trading 995-purity gold, available for immediate settlement (T+0).
• Gold Mini 999 T+0: A smaller contract designed for 999-purity gold (suitable for retail traders), also available for T+0 settlement.
• UAEGD Gold 995 T+0 (1kg, 100g): Gold sourced from UAE Good Delivery (UAEGD) accredited refiners, with options to trade in 1kg and 100g weights, available for T+0 settlement.

• TRQ Gold contracts: IBX offers TRQ Gold contracts, including the UAEGD Gold 995 T+0 contract for both 100g and 1kg weights. These contracts provide flexibility for different market participants, from small jewellers to large institutional investors.
  

These contracts are designed to provide liquidity, transparency, and access to gold in various forms, making them suitable for a range of participants—from large institutional traders to small jewellers.

Silver Contracts Available on IBX

IBX also facilitates the trading of silver, providing a variety of contracts to cater to different trading preferences and volumes.

Available Silver Contracts:

• Silver Bars and Grains: Available for T+0 settlement, these contracts provide flexibility for trading in both bars and grains.
  
  • Silver Bars: Available in larger sizes, perfect for institutional investors.
  • Silver Grains: Smaller-sized contracts suitable for jewellers and smaller investors.
    

The ability to trade silver in both bars and grains allows market participants to tailor their trades according to their needs and preferences, while T+0 settlement ensures quick and efficient execution.

Market Hours and Settlement Types

IBX operates with clear, defined market hours and settlement types to ensure smooth and efficient trading for all market participants.

Market Hours: 9:00 AM to 9:30 PM IST

• The IBX market hours run from 9:00 AM to 9:30 PM IST, providing ample time for traders to execute their transactions within the trading day.
• The extended market hours ensure that traders across different time zones can participate and react to global market conditions.
  

T+0 Settlement: 100% Early Pay-in of Funds and Securities

• T+0 settlement ensures that all trades are settled on the same day, providing quick turnaround times for bullion trades.
• This settlement type offers 100% early pay-in of funds and securities, ensuring that both the buyer and seller are secured in the transaction and the transfer is completed swiftly.
  

BDR Settlement: Happens Every 30 Minutes

• Bullion Depository Receipt (BDR) settlement happens every 30 minutes, ensuring that trades are processed efficiently and BDRs are credited to the trader’s Demat account in a timely manner.
• This frequent settlement cycle adds to the liquidity and efficiency of trading on the IBX platform.

Eligibility Criteria for Participating in IBX

IBX is designed to allow only eligible participants to engage in trading, ensuring that all market players meet specific criteria for regulatory compliance and financial stability.

1. Qualified Jewellers

Qualified Jewellers are key players in the IBX ecosystem. To participate, jewellers must meet the following criteria:

• Net Worth Requirement: Jewellers must have a minimum net worth of ₹25 Crores.
• Precious Metals Trading: Jewellers must deal in precious metals as per the HSN codes related to gold and silver.
• Compliance: They must adhere to regulatory standards and be certified by IFSCA to ensure compliance with IBX’s operating guidelines.
  

2. TRQ Holders

TRQ Holders (Trade and Remittance Qualified Holders) can directly import gold through IBX, but must meet certain requirements:

• IFSCA Registration: TRQ holders must be registered with IFSCA.
• To participate as a TRQ holder, entities must be registered with IFSCA and comply with customs clearance procedures via ICEGATE. The eligibility criteria include adherence to international sourcing and regulatory standards.
• Additional Regulatory Criteria: TRQ holders must also meet other regulatory requirements set by IBX and IFSCA, ensuring that only eligible entities can import bullion.

By ensuring strict eligibility criteria, IBX maintains a regulated and secure trading environment, fostering trust and market integrity.

How to Import Gold through IBX at GIFT City

Importing gold through the India International Bullion Exchange (IBX) at GIFT City is a streamlined process designed to facilitate efficient and direct bullion trade. Here’s a step-by-step guide for jewellers looking to import gold through IBX, ensuring a smooth and compliant experience.

Step-by-Step Guide for Jewellers

1. Open a Trading and Demat Account with IBX Partners

To begin the process of importing gold through IBX, jewellers need to open two essential accounts:

• Trading Account: This account allows you to engage with the IBX platform, enabling you to execute buy and sell orders for gold and silver.
  
  • Required Documentation: Complete your KYC (Know Your Customer) formalities and submit identification documents.
  • Partnered Trading Members: Open your trading account with any IBX-approved trading member.
    
• Demat Account: A Demat account is essential for holding Bullion Depository Receipts (BDRs), which represent the physical gold stored in the authorized vaults.
  
  • IIDI Registration: Open your Demat account with India International Depository IFSC Limited (IIDI), which facilitates the secure storage of bullion.
    

2. Ensure GST Compliance and Customs Clearance

For smooth gold imports through IBX, jewellers must comply with GST regulations and complete customs clearance procedures.

• GST Compliance: Ensure that you are fully compliant with Goods and Services Tax (GST) regulations. This includes registering for GST if you haven’t already and ensuring that all GST returns are filed up-to-date.
  
  • Importance: GST compliance is necessary for all transactions involving bullion, as it ensures the smooth flow of goods and services through customs.
    
• Customs Clearance: To import gold, you need to complete customs clearance through ICEGATE (Indian Customs EDI Gateway).
  
  • Import Documentation: Submit the Bill of Entry and relevant documentation required by customs to ensure smooth clearance.
  • Customs Handling Agent (CHA): Engage with a CHA (Customs Handling Agent) to assist with the customs clearance process and ensure that all customs duties are correctly handled.
    

Key Considerations for Gold Importers

• TRQ Registration: For direct imports of gold, ensure that your entity is a registered Trade and Remittance Qualified (TRQ) holder with the IFSCA. This enables direct bullion imports via IBX.
• To import gold, jewellers must first register for TRQ with IFSCA, complete ICEGATE registration for customs clearance, and ensure compliance with GST regulations. The TRQ holder can directly import gold, streamlining the process and minimizing intermediaries.
• Storage and Security: Gold is stored in authorized vaults by IIDI, ensuring that the imported gold is safely held and easily accessible for trade.
• Liquidity and Flexibility: IBX offers competitive pricing and flexibility in purchasing gold in various contract sizes, from 100g to 1kg, depending on your needs.