On 24th October 2022, BSE completed India’s first transaction on the Electronic Gold Receipt (EGR) segment.
During the Muhurat Trading session this year, BSE launched two new EGR 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. The receipts trade in multiples of 1 gram with delivery in multiples of 10 and 100 grams.
What are Electronic Gold Receipts (EGR)?
EGRs are receipts issued in exchange for physical gold which must be deposited with a vault manager. They are similar to warehouse receipts used to trade in commodities. These receipts are then traded on the stock exchange and are held in the Demat account of investors.
The segment hence offers the facility to convert gold to EGRs, trade 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.
Hence, investment avenues for gold now include:
- Sovereign Gold Bonds (SGBs)
- Gold ETFs
- Electronic Gold Receipts (EGR)
- Digital Gold
- Physical Gold