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National Stock Exchange of India (NSE) announced the launch of Electronic Gold Receipts (EGRs), a new segment aimed at bringing greater transparency, efficiency and formalisation to India's gold market, according to an official statement.
In an official statement, NSE stated that the launch, effective from May 4, 2026, is expected to bridge the gap between physical gold and financial markets by offering a regulated and secure platform for trading in gold. EGRs are dematerialised securities that represent ownership of physical gold, which is 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, integrating gold into the formal financial system. NSE stated, "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. As part of the launch, NSE also successfully demonstrated the dematerialisation of a 1000-gram gold bar into an Electronic Gold Receipt. This highlights the system's ability to convert physical gold into a secure and tradable digital instrument within a regulated framework. Sriram Krishnan, Chief Business Development Officer (CBDO), NSE, said: "The introduction of Electronic Gold Receipts at NSE marks a pivotal evolution in how India interacts with its most cherished asset. By leveraging NSE's robust technology and liquidity framework, we are democratizing access to gold, enabling investors across the nation to trade with unprecedented transparency and confidence. We believe that by creating a seamless, secure, and digital pathway for gold investment, we are positioning gold as a modern, integrated asset class within our capital markets, ultimately reducing dependence on fragmented benchmarks and fostering deeper financial inclusion." The exchange said that EGRs will allow investors to hold gold electronically with assured quality and also enable seamless conversion between physical and digital formats. Investors can participate even with smaller quantities, improving liquidity and flexibility similar to other financial instruments held in demat form. (ANI)
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