Silver Derivatives Launching Soon on IIBX During Navratri: GIFT City Update

GIFT City News: The India International Bullion Exchange (IIBX) located in GIFT City is preparing to introduce silver derivative contracts. The exchange is currently awaiting final approval from the regulator regarding the product design. According to sources familiar with the matter, all necessary regulatory submissions have already been completed, and the final green light from the International Financial Services Centers Authority (IFSCA) is now expected.

At present, silver can only be traded on a spot basis at the IIBX. In contrast, gold futures contracts were successfully launched earlier in June 2024. The MD and CEO of IIBX, Ashok Kumar Gautam, confirmed that the silver derivative products are on track for launch, with great anticipation surrounding their introduction.

The launch of silver derivative contracts is expected to coincide with the festive occasion of Navratri, which runs from October 3 to October 12 this year. This timing is significant, given the cultural importance of the festival and the potential increase in trading activity.

Since the introduction of spot trading for silver in December 2023, the IIBX has seen a remarkable response. On the launch day, the exchange quickly distributed its available silver quota of 3 tonnes within the first half-hour. In the fiscal year 2024, the total traded value reached $698 million, while the volume was an impressive 908.8 tonnes. So far in FY 2025, trading activity has continued robustly, with 237.57 tonnes already traded.

Previously, jewelers were limited to purchasing gold and silver through select banking institutions. Now, they have broader access, as qualified jewelers can import precious metals directly via the IIBX. The exchange’s operational scope has expanded with the initiation of a new vault in Chennai, managed by Brinks India Private Limited, offering enhanced storage solutions for traders. GIFT City and IIBX were launched by Prime Minister Narendra Modi in July 2022, aiming to revolutionize the bullion trading landscape in India.

The imminent launch of silver derivative contracts at IIBX represents a significant step forward for India’s commodities market. As operators and investors alike prepare for this new offering, the expected uptick in trading activity can bring enhanced liquidity and opportunities for market participants. This development not only stands to benefit jewelers through increased access and regulatory support but also signals GIFT City’s growing stature as a key player in global investments and trading.