Electronic Gold Receipts:
The National Stock Exchange of India (NSE) introduced Electronic Gold Receipts (EGRs) which is a new exchange-traded segment for buying and selling gold in electronic form.
- Electronic Gold Receipts (EGRs) are exchange-traded securities representing ownership of physical gold (specified purity) stored in SEBI-regulated vaults.
- They can be held electronically in a demat account, bought and sold in different denominations on the bourse and converted into physical gold via prescribed process.
- Buying and Selling of Electronic Gold Receipts:
- Like shares, EGRs follow a T+1 settlement cycle with the receipts credited to the buyer’s demat account the next trading day.
- Retail investors, jewellers, bullion traders, refiners, institutional investors and other eligible market participants can buy EGRs via registered stockbrokers.
- Investors need both trading and demat accounts to buy and sell EGRs.
- The EGRs are available in two purity standards: 999 (99.9% pure gold) and 995 (99.5% pure gold).
- In each purity category, investors have six different denominations such as 10 mg, 100 mg, 1 g, 10 g, 100 g and 1 kg.
- Those who prefer physical gold can convert EGRs into gold whenever needed.
- This offers a transparent and standardised way to own gold while removing concerns over purity and personal storage.
