NSE launches Electronic Gold Receipts to formalise gold trading ecosystem
EGRs are dematerialised securities that represent ownership of physical gold stored in vaults accredited by the Securities and Exchange Board of India (SEBI). Each receipt is backed by physical gold and can be traded on the exchange, integrating gold into the formal financial system.
The exchange said the initiative is designed to create a transparent and efficient ecosystem for gold trading, enabling better price discovery and wider market participation across jewellers, refiners, traders and institutional investors.
As part of the launch, NSE also completed the dematerialisation of a 1,000-gram gold bar into an EGR, demonstrating the conversion of physical gold into a tradable electronic instrument within the regulated framework.
Sriram Krishnan, chief business development officer at NSE, said the introduction of EGRs is expected to provide a secure and digital pathway for gold investment, while improving accessibility and transparency for investors.
EGRs allow electronic holding of gold with assured quality and enable convertibility between physical and digital formats. The mechanism is expected to facilitate participation in smaller denominations and improve liquidity, aligning gold with other financial instruments held in demat form.
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