Microsoft joins India's ONDC WHAT HAS HAPPENED? US firm Microsoft has become the first big tech company to join the Open Network for Digital Commerce (ONDC), A government-backed project which is aimed at enabling small merchants and mom-and-pop stores in parts of the country to access processes and technologies that are typically deployed by large e commerce platforms such as Amazon and Flipkart. The software giant intends to introduce social e-commerce - group buying experience in the Indian market, Which would include a shopping app for Indian consumers along with their social circle, harnessing the ONDC network to discover the best pricing among retailers and sellers. WHAT IS OPEN NETWORK FOR DIGITAL COMMERECE ? It is an initiative aimed at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks. ONDC is to be based on open-sourced methodology, using open specifications and open network protocols inde...
India's First International Bullion Exchange
On July 29, Prime Minister Narendra Modi will launch India’s first bullion exchange — the India International Bullion Exchange (IIBX) — at Gujarat’s GIFT City (Gujarat International Finance Tec-City), India’s maiden International Financial Services Centre (IFSC) located between Ahmedabad and Gandhinagar.
The bullion exchange, which was announced in the 2020 Union Budget, has not only enrolled jewellers to trade on the exchange, but has also set up necessary infrastructure to store physical gold and silver.
GIFT City has set up the first International Financial Service Centre in India (IFSC) in accordance with the SEZ Act 2005.
WHO CAN TRADE ON IIBX ?
Qualified jewellers will be permitted to import gold through the IIBX.
To become qualified jewellers, entities require a minimum net worth of Rs 25 crore and 90 per cent of the average annual turnover in the last three financial years through deals in goods categorised as precious metals.
"For the first time in India, since the liberalisation of gold imports through nominated banks and agencies in the 1990s, the eligible qualified jewellers in India, have been allowed to directly import gold through IIBX," an official said.
Apart from qualified jewellers, non-resident Indians and institutions will also be able to participate on the exchange after registering with the IFSCA.
In the medium term, institutions such as Funds for Gold ETF are also expected to participate.
Further, jewellers will be able to transact on IIBX as trading members or as clients of a trading member.
For becoming a trading member, a qualified jeweller may establish a branch or a subsidiary in IFSC and apply to the IFSCA
The IIBX will submit a report to IFSCA on a monthly basis providing details of transactions in bullion by qualified jewellers,
Including details of products traded, quantity, value, quantity of gold imported etc.
HOW MANY JEWELLERS SO FAR REGISTERED ?
Currently, there are 56 jewellers registered on the IIBX.
This includes the likes of Malabar Gold Pvt Ltd, Titan Company Ltd, Bangalore Refinery Pvt Ltd, RBZ Jewellers Pvt Ltd, Zaveri and Company Pvt Ltd, Sanghi Jewellers Pvt Ltd, among others.
Trial transactions towards imports are currently being undertaken at the IIBX.
STORAGE CAPACITY OF PRECIOUS METALS ?
A cumulative storage capacity for approximately 125 tonnes of gold and 1,000 tonnes of silver is planned at the GIFT City.
Currently, Indian and global vault service providers have set up, or are in the process of setting up, vaulting facilities at the GIFT-IFSC.
A storage facility is needed at the exchange for those who import in advance keeping upcoming demand or festival season in mind.
PRODUCTS AVAILABLE FOR TRADING ?
Gold 1 kg 995 purity and gold 100 gm 999 purity with a T+0 settlement (100% upfront margin) are expected to trade at IIBX initially. The upfront payment is to negate speculation in the market and reduce risks. Later on, the products will be extended for T+2 (contracts with margi payments), where settlement of funds happens two business days after the order is executed.
A separate segment for UAE gold or gold with large bars (12.5 kg) may trade in future on the IIBX. Silver products will also be made available in later phases, sources said.
ADVANTAGES OF SUCH EXCHANGE IN INDIA ?
The IIBX will be a gateway for bullion imports into India, where all bullion imports for domestic consumption shall be channelised through the exchange.
In addition to providing a trading avenue to various participants, a bullion exchange will also offer the advantages of price discovery, transparency in disclosures, guaranteed centralised clearing and assurance of quality.
A bullion exchange, apart from providing standardisation and transparent mechanism, will also be an important step towards financialization of bullion-based products.
Further, the IFSCA has ensured sourcing integrity of the bullion delivered through IIBX by mandating compliance to Organisation for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
"This will lead to quality assurance and sourcing integrity. With the regulatory foundations in place, IFSCA intends to nurture a bullion ecosystem aimed at positioning India in the international markets, Initially as a price influencer and ultimately as a price setter," said an official from IFSCA.
Q. Which among the following is also called zero coupon bond?
A) Trade bills
B) Call money
C) Treasury bills
D) Commercial papers
C) Treasury bills
ReplyDelete