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News: In May 2026, the National Stock Exchange of India introduced Electronic Gold Receipts (EGRs) for buying and selling gold in electronic form.
About Electronic Gold Receipts (EGRs)
- Electronic Gold Receipts (EGRs) are exchange-traded securities that represent ownership of physical gold stored in the Securities and Exchange Board of India (SEBI)-regulated vaults.
- Launched in: The Bombay Stock Exchange launched India’s first EGR segment on October 24, 2022.
- Regulator: The Securities and Exchange Board of India (SEBI) regulates the Electronic Gold Receipt framework and SEBI-regulated vaults.
- Aim: The initiative aims to improve transparency in gold pricing, standardize quality, provide secure ownership, and make India’s gold market more efficient.
- Key Features of EGRs
- Electronic Ownership: EGRs are held in a demat account, traded on stock exchanges, and can be converted into physical gold through the prescribed process.
- Trading and Settlement: EGRs follow a T+1 settlement cycle and are available for trading during market hours.
- Purity and Denominations: EGRs are available in 99.9% and 99.5 % purity with denominations of 10 mg, 100 mg, 1 g, 10 g, 100 g, and 1 kg.
- Transparent and Secure: Each EGR is backed by physical gold stored in SEBI-regulated vaults, ensuring standardized ownership, transparent pricing, and assured purity.
- Tax: There is no GST on EGR trading, but 3% GST is applicable on physical delivery of gold.
