RBI permits PSBs to trade in GIFT-IFSC on international bullion exchange
The Reserve Bank of India has issued a circular allowing the branches of Indian banks in GIFT-IFSC where they could act as a Trading Member or Trading and Clearing Member of the International Bullion Exchange IFSC Ltd [IIBX].
According to the Circular issued, Indian Banks are authorized to import gold or silver while acting as Special Category Clients [SCC] of the International Bullion Exchange. The SCC will appoint one of the IFSC Banking Units[ IBUs] to act as a clearing member on their behalf. The circular stated that the Trading Member/ Trading and Clearing Member of IIBX shall execute trades only on behalf of clients [without proprietary trading].Read Also : Coal India signs JV Agreement with BHEL
As per RBI, the approval for annual import authorization to banks is under the Foreign Trade Policy for the import of gold and silver. With this, the consignment model in the domestic tariff area of the respective banks is allowed to operate as an SCC on IIBX for the import of gold or silver.
The total client trades placed on the exchange shall be against 110 percent advance pay-in of funds of the expected value of bullion intended to be purchased and securities in the account of the bank, as applicable.Read Also : NCL exceeds 125 million tonnes of coal production
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