Latest Kannada Business news : How will the country’s first international bullion exchange work, what will be the rules of trading and who will become its member?

New Delhi. Prime Minister Narendra Modi on Friday inaugurated the country’s first international bullion exchange at GIFT City in Gandhinagar, Gujarat. On this occasion, the Prime Minister said that India has also now joined the ranks of countries like Singapore, Britain, America.

In such a situation, the question must have arisen in the minds of most people that what is this Indian International Bullion Exchange (IIBX) and how does it work. Will there be buying and selling of gold on this exchange like the stock market and through this will it be possible to invest in the global market as well. You will get answers to all such questions through this news.

Also read – After the new rates of GST, the prices of food items jumped by up to 15%, non-branded flour also became costlier by 25%

So far 64 jewelers are associated with IIBX
Yogesh Singhal, chairman of The Bullion and Jewelers Association, said that gold imports will get the maximum benefit from the new exchange received by the country. Gold can now be imported into the country through IIBX i.e. India International Bullion Exchange, which will make this process easier. So far, about 64 jewelers have joined the registered IIBX. A 125-tonne gold vault will be prepared on this exchange, while the silver vault will have a capacity of 1,000-tonne. Through this exchange there will be transparency in bullion trading.

What will be the rules of trading
Only qualified jewelers will be able to import gold or silver through this exchange. Jewelers will need to have a branch in IFSC to become qualified. It is necessary to have a net worth of at least 25 crores for imports. The bullion sector should account for 90% of the turnover for the last three years. The trading hours on this exchange will be from 9 am to 3.30 pm.

Also read – FDI Update: The country got a record 6 lakh crore foreign investment last year, in which sector the maximum FDI came?

These facilities will also be available
It is believed that in the near future, the facility of trading on this exchange will be given for 22 hours. Apart from this, qualified jewelers will get the facility of payment in advance of 11 days. All contracts and settlements will be done in dollars only. The settlement will be done in T+O with 100% lump sum margin on this exchange. Further, it can be approved for settlement in T+2 also. This means that the money will be released within two days of the day the trader will apply for the settlement.

How many vaults and what products
IIBX will have 3 vaults. One will be powered by the sequel which has been approved and the other will be powered by Brinks which is awaiting final approval and the third one is currently under construction. There will be a product of 1 kg of 995 purity on the exchange. Apart from this, there will also be a product of 100 grams of 999 purity, while there is also a possibility of launching 12.5 kg products for UAE.

What will be the benefits of IIBX
Through this, a large entry gate for gold imports will be available and the country will be connected to the global bullion market. India now decides the price of its gold in terms of the world, but it will be able to decide its own price in future. New avenues for bullion import will open in the country and along with quality, the confidence of price and transparency will increase. India’s position in the global jewelery market will also strengthen.

How are prices decided now?
Currently, the price of gold is decided by the London Metal Exchange, while the New York, Japan Bullion Exchange is also looked at and the price is per ounce on the LME. One ounce weighs 28.35 grams. Assume that the price of gold in the international market is $ 1,750 per ounce, then the government’s import duty adds 12.75% to it.

Apart from this, an additional $2 is added on top of the 2.5% agri infra cess and duty. If the rupee continues to weaken against the dollar, then the price will also go up. The members of this exchange will include all major banks, gold exchange trading funds and government agencies like MMTC.

Be the first to read breaking news in Hindi News18 Hindi | Today’s latest news, live news updates, read the most reliable Hindi news website News18 Hindi |

Tags: business news, Business news in hindi, Gold Rate, silver price