Electronic Gold Receipts

Electronic Gold Receipts Latest News

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. 

About Electronic Gold Receipts

• 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.
• Advantage: This offers a transparent and standardised way to own gold while removing concerns over purity and personal storage.

Source: TH

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