Daijiworld Media Network – Mumbai

Mumbai, May 6: The National Stock Exchange of India (NSE) has announced the launch of Electronic Gold Receipts (EGRs), a new trading segment aimed at bringing greater transparency, efficiency and formalisation to the country’s gold market.

In a statement, NSE said EGRs are expected to bridge the gap between physical gold and financial markets by offering a regulated and secure platform for gold trading. These are dematerialised securities representing ownership of physical gold stored in SEBI-accredited vaults and held electronically through depositories.

Each EGR is fully backed by physical gold and can be traded on the exchange, thereby integrating gold into the formal financial system.

The exchange said the new mechanism will allow investors to hold gold in electronic form with assured quality, while also enabling seamless conversion between physical and digital formats.

EGRs are expected to enhance accessibility, allowing participation even with smaller quantities, while improving liquidity and flexibility similar to other financial instruments held in demat accounts.

NSE said the initiative aims to create a robust and transparent ecosystem for gold trading, ensuring efficient price discovery and boosting confidence among stakeholders, including jewellers, refiners, traders and institutional investors.