Bullion trade in GIFT City runs through the India International Bullion Exchange (IIBX), the only IFSCA-regulated gateway for gold and silver imports into India. Whether you intend to import physical metal as a Qualified Jeweller, hold a Tariff Rate Quota licence, or simply hedge price exposure, the onboarding route differs, and getting the sequencing right matters for cost and time.
This guide walks through who can participate, the two distinct onboarding paths, the customs and duty advantages of routing imports through IIBX, and the settlement mechanics you should understand before committing capital.
Why bullion businesses are moving to GIFT City
IIBX, launched in 2022 and promoted by India's leading market infrastructure institutions, is designed as the principal formal channel for bullion imports into India. Operating from GIFT City gives participants a time-zone advantage that bridges Asian and Western trading hours, an IFSCA-regulated market structure, and access to secure vaulting within the SEZ. For entities already considering a broader presence — for instance those exploring company registration in GIFT City — bullion trading is one of the more distinct, physical-asset-linked activities the ecosystem supports, alongside metals and commodities entities more generally.
Who can participate in IIBX bullion trading
IIBX accommodates several categories of participant, each with a distinct onboarding path and eligibility test:
- Qualified Jewellers (QJ) — entities in the precious metals business under the relevant HS codes, required to hold a prescribed minimum net worth (as currently set by IFSCA at a multi-crore rupee threshold, computed as paid-up capital plus reserves and securities premium, less accumulated losses) and to derive the substantial majority of their three-year average turnover from precious metals dealings. QJs can import both gold and silver and may hold Tariff Rate Quotas.
- TRQ Holders — entities holding a valid India-UAE Tariff Rate Quota licence or DGFT authorisation, entitled to import gold under the India-UAE CEPA at concessional customs duty.
- Gold and Silver Futures Hedgers — domestic residents (other than individuals) with genuine price exposure, using IIBX futures purely to hedge.
- Other market participants — refiners, bullion dealers, bullion importers, jewellery exporters, Special Category Clients and international clients.
Qualified Jeweller status also requires a net worth certificate from a practising Chartered Accountant, Cost Accountant or Company Secretary, and satisfaction of the "fit and proper" criteria under the IFSCA (Bullion Exchange) Regulations, 2020.
Path 1: physical bullion traders (QJs and TRQ holders)
If your objective is to import and trade physical gold or silver, the onboarding sequence runs roughly as follows:
- IIBX membership application — filed through the IIBX Membership Portal, seeking recognition as a QJ or valid TRQ holder.
- Demat account with IIDI — once IFSCA notification comes through, open a demat account with India International Depository IFSC Limited to hold Bullion Depository Receipts (BDRs) electronically.
- Trading and clearing account — obtain a Legal Entity Identifier and Unique Client Code, then open accounts with an IFSCA-registered trading/clearing member.
- TRQ certificate submission — TRQ holders submit their certificate to both IIBX and IIDI.
- ICE Gate registration — mandatory for customs clearance on bullion imports.
- Port registration — register the TRQ at the designated import port.
- Custom House Agent — engaging one is recommended to streamline clearance.
- Vault partner — establish a relationship with an IFSCA-registered vault manager in GIFT City for secure storage and delivery.
Path 2: bullion futures hedgers
Entities that only want to hedge price risk, without physically importing metal, follow a lighter path: secure a USD remittance limit sanctioned by an Authorised Dealer bank, then open a trading and clearing account with any IFSCA-registered bullion trading/clearing member. Direct onboarding with IIBX itself is not required for pure hedgers — membership through a registered clearing member is sufficient.
Duty and cost advantages of importing through IIBX
| Benefit | What it means in practice |
|---|---|
| IGCR Rule exemption | Where importer and TRQ holder are the same entity, the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2022 do not apply, per Notification No. 66/2023-Customs. |
| Concessional customs duty | TRQ gold under the India-UAE CEPA attracts a duty concession; the prevailing headline rate should be confirmed against the current customs notification. |
| No 1% bond requirement | Importers avoid blocking an additional bond amount with customs or depositing it with intermediaries, easing working capital. |
| Rapid BDR credit | Bullion Depository Receipts are credited to demat accounts roughly every 30 minutes, enabling same-day delivery once customs clearance is complete. |
| Flexible lot sizes | Contracts accommodate quantities as small as 100 grams under certain T+0 contracts, down to 1 kg lots otherwise. |
The India-UAE CEPA quota is reviewed and reset periodically by the government, so the annual tonnage and duty concession should always be checked against the latest DGFT and customs notifications rather than assumed to be static year to year.
Regulatory framework
Bullion trade at IIBX sits under the joint oversight of IFSCA and the Ministry of Finance. Key reference points include the IFSCA (Bullion Exchange) Regulations, 2020, the Customs Act, 1962 with its bullion-specific notifications, and the India-UAE CEPA for TRQ gold. Because customs notifications are amended periodically, always verify current duty rates and quota volumes on ifsca.gov.in before finalising an import plan.
Hedging mechanics: IIBX gold futures
IIBX gold futures allow domestic residents (excluding individuals) with genuine price exposure to hedge in US dollars, without needing an overseas subsidiary. Contracts are typically quoted in USD per troy ounce with a 1 kg trading unit, extended trading hours spanning Asian and part of US market hours, and delivery — where invoked — settled through BDRs at IFSCA-registered vaults. Margining follows a percentage-of-value or VaR-based approach, whichever is higher, as prescribed by the exchange.
Settlement: Bullion Depository Receipts
Physical bullion deposited in an IFSCA-registered vault is converted into an electronic BDR, enabling paperless trading and ownership transfer. T+0 settlement contracts, frequent BDR credit cycles, multiple daily fund settlement windows, and a 100% early pay-in requirement together compress the turnaround time for a bullion trade dramatically compared with conventional import channels.
Setting up: entity and compliance considerations
Before applying for IIBX membership, most participants first need a registered presence in GIFT City — see our companion guide on company registration in GIFT City for the SEZ and IFSCA entity approval process. Ongoing obligations include net worth maintenance, periodic reporting to IFSCA, and coordination with your vault manager and clearing member on custody and settlement. Firms that also operate in adjacent regulated spaces — such as capital market intermediaries or qualified jewellers registered separately — should map overlapping compliance calendars carefully, an area where a compliance retainer is often more efficient than ad hoc filings.
Frequently asked questions
What is the minimum net worth to register as a Qualified Jeweller?
IFSCA prescribes a minimum net worth threshold for QJs, computed from paid-up capital, reserves and securities premium less accumulated losses; as this figure is set by regulation, confirm the current prescribed amount before applying.
Can an individual hedge gold price risk on IIBX?
No. Only domestic residents other than individuals with genuine price exposure are permitted to use IIBX gold and silver futures for hedging.
Do TRQ holders need to separately register for TRQ if already a Qualified Jeweller?
No — Qualified Jewellers can import their TRQ gold through IIBX without additional re-registration for the TRQ itself, simplifying the onboarding sequence.
How quickly are Bullion Depository Receipts credited?
BDRs are credited to a buyer's demat account roughly every 30 minutes following settlement, one of the fastest cycles among global bullion exchanges, enabling same-day physical delivery once customs formalities clear.
Is a Custom House Agent mandatory?
Engaging a CHA is recommended rather than strictly mandatory, but given the customs formalities involved in bullion import, most participants find it materially speeds up clearance.
Does hedging require IIBX membership directly?
No. Hedgers can access IIBX gold and silver futures through an IFSCA-registered trading/clearing member without direct IIBX onboarding, provided their AD bank has sanctioned the necessary USD limits.
Next steps
Bullion trading in GIFT City rewards careful sequencing across entity registration, IIBX membership, vaulting and customs formalities. GIFT City Gateway can help structure your entity, coordinate IIBX and vault onboarding, and keep your compliance calendar current — tell us what you need to get started.
Vault management and physical custody
Secure vaulting is central to the IIBX model. IFSCA-registered vault managers operating within the GIFT SEZ hold physical gold and silver on behalf of participants, and it is the deposit of metal into one of these vaults that triggers conversion into an electronic Bullion Depository Receipt. Choosing a vault partner is not a purely operational decision — insurance cover, audit frequency, access protocols and reconciliation practices all affect how quickly you can move from a BDR credit to physical delivery when required. Entities evaluating vault partners alongside their metals and commodities entity registration should treat this as part of the core setup workstream, not an afterthought once trading has already begun.
For businesses that plan to combine bullion trading with other GIFT City activities, coordinating vault, customs and IFSCA reporting calendars through a single operations support function tends to reduce the administrative load considerably compared with managing each relationship independently.
