How to sell in IIBX Exchange?

How to Sell on IIBX Exchange: A Complete Guide

The India International Bullion Exchange (IIBX) is a pioneering platform introduced to streamline bullion trading in India. Located at the Gujarat International Finance Tec-City (GIFT City), it is the country's first International Bullion Exchange, aiming to make gold trading more transparent, efficient, and accessible. If you're interested in selling gold or other precious metals via IIBX, it is crucial to understand the framework, regulations, and processes involved.

This guide offers a detailed walkthrough of how to sell on the IIBX exchange, covering eligibility, registration, compliance requirements, trading mechanisms, and settlement processes.

1. What is IIBX?

The India International Bullion Exchange (IIBX) was launched in July 2022 to enable direct participation of Qualified Jewellers and Non-Resident Indians (NRIs) in the bullion market. It operates under the regulatory framework of the International Financial Services Centres Authority (IFSCA) and facilitates the import and trading of physical gold in a regulated and transparent manner.

Key Features of IIBX:

  • Transparent pricing based on international benchmarks

  • Direct access to global suppliers and Indian buyers

  • Centralized clearing and settlement

  • Regulatory oversight by IFSCA

  • Integrated with vaulting services

2. Who Can Sell on IIBX?

Currently, eligible sellers on the IIBX platform include:

  • Foreign Suppliers: International bullion suppliers registered with IIBX

  • Domestic Refineries: Indian refiners accredited and permitted to sell refined gold

  • Qualified Jewellers (QJs): Those registered and approved under the QJ framework for limited cases (mainly as buyers, though in some cases may re-export or re-sell)

To sell on IIBX, the entity must meet IFSCA and IIBX norms, including:

  • Registration with the IIBX as a trading member or a participant

  • Accreditation by the exchange (for refiners)

  • Compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) norms

3. Steps to Register as a Seller on IIBX

Step 1: Entity Incorporation

  • The entity must be incorporated in the International Financial Services Centre (IFSC), such as GIFT City.

  • A foreign bullion supplier may incorporate a branch or appoint an Indian representative.

Step 2: Apply for Membership

  • Register as a Bullion Trading Member (BTM) or a Foreign Bullion Supplier (FBS).

  • Submit application to IIBX and IFSCA along with necessary documents (company details, net worth certificate, business plan, etc.).

Step 3: Vault Registration

  • Enter into an agreement with an IIBX-accredited vault manager.

  • The bullion to be sold must be deposited and validated in a certified IIBX vault.

Step 4: KYC & AML Compliance

  • Fulfill KYC norms as per IFSCA regulations.

  • Undertake due diligence and provide periodic compliance reports.

4. How to Sell Bullion on IIBX

Once you're a registered member or supplier, the actual process of selling involves:

a. Uploading the Bullion

  • Physical gold or silver (995 purity or above) is imported or transferred to an IIBX-certified vault.

  • The vault manager conducts quality and quantity checks.

  • Bullion is then marked and assigned an electronic receipt (vault receipt).

b. Listing for Sale

  • Using the IIBX trading platform, sellers list the bullion for sale.

  • Specify key parameters: metal type, purity, quantity, price (fixed or bid-based), and delivery location.

c. Price Discovery

  • IIBX uses a transparent order-driven mechanism.

  • Buyers (usually Qualified Jewellers) place bids or accept quoted offers.

  • Once a trade is matched, it’s executed via the exchange.

d. Trade Execution

  • Trades are executed electronically in real-time.

  • Confirmation is provided to both buyer and seller via the platform.

e. Clearing & Settlement

  • IIBX follows a T+0 or T+1 settlement cycle depending on the contract.

  • The exchange handles the clearing through its clearing corporation (IICC).

  • Funds are settled in foreign currency via IFSC Banking Units (IBUs).

  • Bullion is delivered from vault to buyer after full payment.

5. Taxation & Compliance

a. Customs Duty

  • When bullion is imported into the IIBX ecosystem, no customs duty is levied until it is cleared into the domestic tariff area (DTA).

  • On withdrawal into India, applicable duties are charged.

b. GST & Other Taxes

  • GST is applicable only when the gold enters the Indian domestic market, not for trades within the IIBX ecosystem.

c. Regulatory Filings

  • Sellers must maintain transaction records, adhere to AML standards, and report as per IFSCA and FEMA norms.

6. Advantages of Selling on IIBX

  • Global Access: Reach a broad market of Indian jewellers and traders

  • Transparent Pricing: Benchmarking to global market prices reduces arbitrage

  • Reduced Intermediaries: Direct trade without multiple middlemen

  • Integrated Infrastructure: Vaulting, clearing, and settlement under one roof

  • Regulatory Security: Operates under a clear and enforceable legal framework

7. Challenges and Considerations

  • Regulatory Hurdles: Foreign entities must navigate Indian compliance and legal structures

  • Market Understanding: Sellers need to understand Indian market dynamics and buyer behavior

  • Initial Setup Cost: Vault agreements, memberships, and incorporation costs can be substantial

8. Conclusion

Selling on the IIBX Exchange represents a major leap toward transparency and modernization in India’s bullion market. By participating in this platform, sellers gain access to a regulated, technologically advanced marketplace that connects them directly with one of the world’s largest consumers of gold. However, the process demands rigorous compliance, thorough understanding of trade mechanisms, and adherence to regulatory norms.

Whether you're a global bullion supplier or a domestic refinery, establishing a presence on IIBX can be a lucrative and forward-looking decision. With the right preparation and strategic approach, sellers can unlock significant value from India's growing demand for precious metals.


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