India’s largest stock exchange, NSE, has officially started live trading in Electronic Gold Receipts (EGRs) from May 18.
The move is aimed at making gold investment more digital, secure, and easier for investors across the country.
At present, EGR vault and collection centres are operating in Ahmedabad and Mumbai.
However, NSE is already expanding the network to more cities after receiving a positive response to the product.
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NSE Plans Major Expansion Across India
NSE has announced four new vaulting and collection centres in:
Delhi
Kolkata
Chennai
Bangalore
These centres also became operational from May 18.
The exchange said this is only the beginning. In the coming phases, NSE plans to expand the EGR network to around 120 centres across India.
Before the official launch, NSE conducted a mock trading session on May 16 to test the system.
According to the exchange, the exercise was completed smoothly without any technical issues.
What Are Electronic Gold Receipts?
Electronic Gold Receipts, or EGRs, are digital certificates that represent ownership of physical gold.
In simple terms, investors can buy gold digitally through the stock exchange without physically storing it at home.
When someone purchases an EGR, it appears directly in their demat account, similar to shares or bonds.
The gold behind these receipts is backed by actual physical gold stored in secure vaults.
Investors can also convert their digital holdings into physical gold whenever they want to redeem it.
Why EGRs Could Become Popular
EGRs offer several advantages compared to traditional physical gold purchases.
They:
Remove the hassle of storage and safety concerns
Provide easier buying and selling through exchanges
Ensure purity and quality standards
Offer better liquidity for investors
The product can be used by:
Retail investors
Jewellers
Bullion dealers
Refineries
SEBI had first approved NSE’s EGR platform in 2022 as part of efforts to modernise gold trading in India.
Trading Timings and Settlement Details
EGRs are traded on NSE’s dedicated segment from Monday to Friday between 9:00 am and 11:30 pm IST.
The longer trading hours allow Indian investors to react to international gold price movements.
Transactions on the EGR platform follow a T+1 settlement system, meaning trades are settled on the next working day.
With gold continuing to remain a popular investment option in India, NSE’s expansion of Electronic Gold Receipts could make digital gold trading more accessible to investors nationwide.