The has launched trading in Electronic Gold Receipts with physical gold as underlying commodity.
NSE has dematerialisation Gold bar (1000 grams) into an Electronic Gold Receipt, symbolising the seamless conversion of physical gold into a secure, tradable electronic instrument in the regulated ecosystem.
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, providing improved liquidity and flexibility comparable to other financial instruments held in demat form.
Gold integration
The product is expected to bridge the gap between physical gold and the financial markets by offering a regulated, secure and technologically advanced platform for trading in the precious commodity.
EGRs are dematerialised securities that represent 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.
NSE aims to create a transparent ecosystem for gold trading, enabling efficient price discovery, improved market participation and enhanced trust across stakeholders including jewellers, refiners, traders and institutional investors.
Sriram Krishnan, Chief Business Development Officer, NSE said by creating a seamless, secure and digital pathway for gold investment, the exchange intends to position gold as a modern, integrated asset class in capital markets, ultimately reducing dependence on fragmented benchmarks and fostering deeper financial inclusion.