Consider the following statements regarding the Electronic Gold Receipts (EGRs): 1. EGRs are securities representing physical gold deposited with SEBI-accredited vault managers and are traded on recognised stock exchanges. 2. EGRs are available in a single purity standard of 999 (99.9% pure gold). 3. EGRs are issued and regulated by the Reserve Bank of India (RBI). How many of the above statements are correct? |ForumIAS

Q. Consider the following statements regarding the Electronic Gold Receipts (EGRs):
1.EGRs are securities representing physical gold deposited with SEBI-accredited vault managers and are traded on recognised stock exchanges.
2.EGRs are available in a single purity standard of 999 (99.9% pure gold).
3.EGRs are issued and regulated by the Reserve Bank of India (RBI).
How many of the above statements are correct?

[A] Only one

[B] Only two

[C] All three

[D] None

Answer: A

Notes:

Explanation: 1 only

Statement 1 is correct: Electronic Gold Receipts (EGRs) are SEBI-regulated securities backed by physical gold deposited with SEBI-accredited vault managers. They are traded on recognised stock exchanges, similar to other securities.

Statement 2 is incorrect: The EGRs are available in two purity standards: 999 (99.9% pure gold) and 995 (99.5% pure gold).

Statement 3 is incorrect: EGRs are not issued or regulated by the RBI and are not part of the Sovereign Gold Bond (SGB) Scheme. They are regulated by SEBI under the framework for trading electronic gold receipts.

Source: TH

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