On September 12, 2020 International Financial Services Centre Authority (IFSCA) and India Gold Policy Center (IGPC) at Indian Institute of Management – Ahmedabad (IIMA) (IFSCA-IIMA), sponsored by World Gold Council, signed Memorandum of Understanding (MoU) at the IFSCA, GIFT City Gandhinagar to provide consultation to facilitate the establishment of International Bullion Exchange(IBE) in India.
Provisions of MoU
i.As part of the MoU, IGPC-IIMA an independent think tank with in-house expertise in the area of gold markets shall be a knowledge partner for IFSCA to successfully roll out the International Bullion Exchange.
ii.IGPC-IIMA by setting broader vision, developing success strategies and creating operating guidelines for smooth functioning of the bullion exchange, will take a top-down approach.
Note– IIMA has supported efforts to build a multi-strategic nation building initiatives in the past, and this cooperation reaffirms IGPC-IIMA commitment.
About International Bullion Exchange(IBE)
i.It aims to strike a balance to reduce the current market inefficiency in the Indian bullion trade, thus precious metals trade with financial markets, and create a transparent platform for bullion trading.
ii.Through this, IBE intends to achieve efficient price discovery, quality and services that are on par with international standards.
iii.IBE is expected to facilitate market development through higher degree compliance, traceability, and product innovation.
Significance
i.The share of global gold consumption of India is about 20 to 25%.
ii.Even after 2 decades of opening the gold market in India, it still does not have the infrastructure to connect India with the rest of the world.
iii.To a well-functioning market that can operate at scale, price discovery and transparency are fundamental.
iv.It is to be noted that creating a market that is connected to the rest of the world is the answer to most of the challenges that gold is supposed to bring to the economy.
International Financial Services Centre Authority (IFSCA)
On 27th April 2020, The Union government had notified that it had set up IFSCA, a unified authority to regulate all financial services in International Financial Services Centres (IFSCs) across the country. Its headquarters will be at Gandhinagar, Gujarat.
Click here to Know more about IFSCA
Recent Related News:
i.On 6th August, 2020 National Highways Authority of India (NHAI) signed an agreement with Indian Institute of Technology Delhi to set up a Centre of Excellence (CoE) for use of Artificial Intelligence (AI) in data driven decision making and Advance Data Management System for Highways (ADMS Highways).
- The Memorandum of Understanding (MoU) was signed in the presence of Dr. Sukhbir Singh Sandhu, Chairman NHAI and Dr V Ram Gopal Rao Director, IIT Delhi.
ii.On August 5, 2020 Andhra Pradesh(AP) Government signed an Memorandum of Understanding (MoU) with US based, The Boston Group(TBG) to set up a facility at Visakhapatnam dedicated to Research and Development (R&D) in the Information Technology sector with focus on learning platforms and also leveraging advanced technologies like artificial intelligence (AI), machine learning (ML) and cybersecurity.
About IGPC-IIMA:
The full name of the centre is the India Gold Policy Center at Indian Institute of Management – Ahmedabad (IIMA)
Chairperson– Prof Arvind Sahay
HeadQuarters– Ahmedabad, Gujarat
About International Financial Services Centre Authority (IFSCA):
Chairman- Injeti Srinivas(1st chairman)
HeadQuarters– Gandhinagar, Gujarat
