What are Electronic Gold Receipts (EGR)?
BSE has received approval from SEBI to launch the Electronic Gold Receipts (EGR) segment with gold products of 995 and 999 purity. Trading EGRs on the exchange will help encourage a uniform and transparent gold price. Similar to buying and selling stocks, it is India's first spot physical gold exchange-traded product.
EGRs are issued in exchange for physical gold which must be deposited with a vault manager. These receipts are then traded on the stock exchange and held in the demat account of investors. EGRs are similar to warehouse receipts used to trade in commodities, and vault managers perform the function of a Depository Participant.
The segment will hence offer the facility to convert gold to EGRs, trade in EGRs, and convert EGRs back to gold. Trades are settled on a T+1 basis and are traded on BSE from 9:00 a.m. to 9:30 p.m.