What changed
Previously, only branches of Indian banks in GIFT-IFSC could act as Professional Clearing Members on IIBX. Now, RBI additionally permits these entities to act as Trading Members or Trading and Clearing Members, and allows banks authorized to import gold/silver to operate as Special Category Clients on IIBX.
What it means for you
Indian banks can now directly facilitate bullion trades on IIBX as TM/TCM, but without proprietary trading—only on behalf of clients. Banks with gold/silver import authorization can import via IIBX as SCC, offering clients a new channel. This deepens the GIFT-IFSC ecosystem and aligns with India's bullion market development goals.
What you must do
- Review and update internal policies to comply with TM/TCM and SCC roles, including 110% advance pay-in of funds for buy orders and securities for sell orders for all client trades placed on the exchange.
- Ensure board approval for a global sub-limit on net overnight open position in gold/silver, which shall not exceed one tonne of gold equivalent.
- Apply for RBI No Objection Certificate before any branch/subsidiary/JV in GIFT-IFSC seeks TM/TCM status on IIBX.
- Adhere to Master Circular – Loans and Advances – Statutory and Other Restrictions dated July 01, 2015 and other relevant RBI instructions for these roles.
Who it affects
Scheduled Commercial Banks (excluding RRBs) with GIFT-IFSC presence, Banks authorized to import gold/silver, Clients of banks using IIBX for bullion trading
Can banks trade on their own account as TM/TCM on IIBX?
No, TM/TCM roles are restricted to executing trades only on behalf of clients; proprietary trading is not permitted.
What is the risk management requirement for client trades?
All client trades must be backed by 110% advance pay-in of funds for buy orders and securities for sell orders, as applicable.
Do banks need prior RBI approval to become a TM/TCM?
Yes, the parent bank must obtain a No Objection Certificate from RBI before its GIFT-IFSC entity applies for TM/TCM status on IIBX.