The National Stock Exchange of India (NSE) on Monday introduced Electronic Gold Receipts (EGRs), marking the launch of a new segment aimed at improving transparency and efficiency in gold price discovery.
The initiative is designed to bridge the long-standing divide between physical gold and financial markets by offering a secure, regulated, and technology-driven platform for trading the precious metal, the exchange said in an official statement.
EGRs are dematerialised securities that represent ownership of physical gold stored safely in Sebi-accredited vaults. These receipts are held electronically through depositories and are fully backed by real gold, allowing them to be traded on the exchange like financial instruments.
According to NSE, the launch will help build a transparent and efficient ecosystem for gold trading. It is expected to enhance price discovery, widen market participation, and strengthen trust among jewellers, refiners, traders, and institutional investors.
The exchange also highlighted a successful demonstration where a 1,000-gram gold bar was converted into an Electronic Gold Receipt, showcasing the seamless transition from physical gold to a digital tradable format.
Shri Sriram Krishnan, Chief Business Development Officer (CBDO) at NSE, said the introduction of EGRs represents a major step forward in how India engages with gold, one of its most valued assets. EGRs also enable investors to hold gold electronically and convert it easily between physical and digital formats, making it possible for even small-scale investors to participate in the gold market.
