NSE launches Electronic Gold Receipts

New Delhi: The National Stock Exchange of India (NSE) on Monday launched Electronic Gold Receipts (EGRs) as a new segment, in a bid to create a more transparent and efficient price discovery of the yellow metal.

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The move is expected to bridge the age-old gap between physical gold and the financial markets by offering a regulated, secure, and technologically-advanced platform for trading in the precious commodity, the exchange said in a statement.

EGRs are dematerialised securities representing ownership of physical gold, which is securely stored in Sebi-accredited vaults and held electronically through depositories. Each EGR is fully backed by physical gold and is tradable on the exchange, seamlessly integrating gold into the formal financial system.

"With this launch, NSE 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," the exchange said.

NSE also witnessed a successful dematerialisation of a gold bar (1,000 grams) into an Electronic Gold Receipt, symbolising the seamless conversion of physical gold into a tradable electronic instrument.

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Shri Sriram Krishnan, Chief Business Development Officer (CBDO), NSE, said: "The introduction of EGRs at NSE marks a pivotal evolution in how India interacts with its most cherished asset."

By facilitating electronic holding, and seamless convertibility between physical and digital formats, EGRs empower investors to participate in the gold market even in smaller denominations.

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