Electronic Gold Receipts:
The National Stock Exchange of India (NSE) launched Electronic Gold Receipts (EGRs) as a new trading segment.
- EGRs are dematerialised securities that represent ownership of physical gold.
- The underlying gold is stored in SEBI-regulated vaults, and investors hold the receipts in their demat accounts — similar to shares or ETFs.
- Vault Manager is a new entity registered by SEBI for providing vaulting services for gold deposited for the purpose of creation of EGR.
- Each EGR is backed by actual gold, ensuring authenticity and standardisation.
- It is operated under SEBI guidelines.
- The process starts with depositing physical gold at accredited vaults, which is then converted into EGR units.
- These units are credited to a demat account and can be traded on the exchange.
- Investors can also convert EGRs back into physical gold, offering flexibility between digital and physical ownership.
- The EGR ecosystem is designed for a wide set of participants, including jewellers, refiners, traders, and retail and institutional investors.
