The National Stock Exchange of India (NSE) has announced the launch of Electronic Gold Receipts (EGRs), a new segment aimed at bringing greater transparency, efficiency and formalisation to India’s gold market.
In a statement, NSE said that the launch of EGRs is expected to bridge the gap between physical gold and financial markets by offering a regulated and secure platform for trading in gold. EGRs are dematerialised securities that represent ownership of physical gold, which is stored in the Securities and Exchange Board of India (SEBI) accredited vaults and held electronically through depositories. Each EGR is fully backed by physical gold and can be traded on the exchange, integrating gold into the formal financial system.
The exchange said that EGRs will allow investors to hold gold electronically with assured quality and also enable seamless conversion between physical and digital formats. Investors can participate even with smaller quantities, providing improved liquidity and flexibility, similar to other financial instruments held in demat form.
The NSE stated that, through this launch, it aims to create a robust and transparent ecosystem for gold trading, enabling efficient price discovery, improved market participation, and enhanced trust across stakeholders, including jewellers, refiners, traders, and institutional investors.
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