Ashok Kumar Gautam, the first chief executive officer of India International Bullion Exchange IFSC Ltd. (IIBX), has resigned from his position, marking a setback for the country’s only dedicated bullion exchange.
According to a report by Bloomberg, Gautam, who has headed the exchange since its launch in 2022, cited personal reasons for his decision, according to sources familiar with the matter.
The CEO will continue during a three-month notice period, which is expected to conclude in November. His departure comes at a time when IIBX is attempting to increase participation and strengthen its position in India’s massive gold market.
Launched with the objective of creating a regulated and transparent channel for bullion imports, IIBX has faced challenges in attracting significant trading volumes.
The exchange took nearly three years to cross cumulative gold trading of 100 tonnes, a relatively small figure compared with India’s annual gold imports of around 700 tonnes through multiple routes, including banks.
The bullion exchange witnessed subdued activity due to operational delays, administrative challenges and uncertainty surrounding taxation policies.
However, trading activity showed some improvement in April this year when regulatory changes temporarily made IIBX the only route for importing gold into India.
Representatives of the exchange have been holding discussions with government authorities and industry stakeholders to encourage wider participation and improve market adoption.
Located at Gujarat’s GIFT City, near Ahmedabad, IIBX was established as part of India’s efforts to create a global bullion trading ecosystem.
The exchange is backed by major market infrastructure institutions, including the National Stock Exchange of India Limited, BSE Limited and National Securities Depository Limited.
The platform operates under the regulatory supervision of the International Financial Services Centres Authority and was envisioned as a key step towards making India a more organised and efficient bullion trading hub.
Gautam’s resignation has renewed concerns over the exchange’s ability to achieve its original objective of becoming a major gateway for gold imports and strengthening India’s bullion market infrastructure.
