The National Stock Exchange (NSE) has officially launched trading in Electronic Gold Receipts (EGRs), marking a new step in India’s efforts to modernise gold investing and bring more transparency to the bullion market.
EGRs are digital instruments that represent ownership of physical gold stored securely in SEBI-approved vaults. Investors can buy, sell, and hold them on the exchange in the same way they trade shares, without needing to physically store gold.
The new system aims to make gold investment more transparent, regulated, and accessible. Each EGR is backed by a fixed quantity of gold that meets strict purity standards, helping ensure quality and reducing concerns related to fake or unverified gold.
Trading takes place on the NSE platform during market hours, with prices determined by market demand and supply. Investors also get the option to convert their digital holdings into physical gold, subject to exchange rules.
According to exchange details, EGRs are held in demat form and offer benefits such as easier trading, better price discovery, and reduced storage and security risks compared to physical gold. The system is designed to bring uniform pricing across the country and integrate gold more closely with financial markets.
The launch is part of a broader effort to formalise India’s large but fragmented gold market. India is one of the world’s biggest consumers of gold, but a significant portion of trading still happens through physical and unorganised channels.
Market participants, including retail investors, jewellers, bullion traders and refineries, are expected to take part in the new segment. While the product offers improved transparency and convenience, experts note that liquidity and adoption will take time to build as investors become more familiar with the instrument.
The NSE’s move is seen as an important step toward making gold trading more structured and aligned with modern financial systems, similar to equities and exchange-traded funds.