India’s largest stock exchange, NSE, has officially started live trading in Electronic Gold Receipts (EGRs) from May 18.
The move is expected to make gold investing easier, safer, and more convenient for both retail and institutional investors.
At present, EGR vault and collection centres are active in Ahmedabad and Mumbai. However, NSE is now rapidly expanding the network across the country.
NSE Plans 120 Gold Collection Centres
After receiving a positive response to the EGR platform, NSE has announced four new vaulting and collection centres in:
Delhi
Kolkata
Chennai
Bangalore
These centres also became operational from May 18.
The stock exchange said this is only the beginning. Over time, NSE plans to expand the network to around 120 collection centres across India in different phases.
Before the official launch, NSE also conducted a mock trading session on May 16, which was completed successfully without any technical issues.
What Are Electronic Gold Receipts (EGRs)?
Electronic Gold Receipts, or EGRs, are digital certificates that represent ownership of real physical gold.
Instead of storing physical gold at home, investors can buy EGRs electronically through the stock exchange.
The gold is safely stored in authorised vaults while the ownership appears in the investor’s demat account, similar to shares and bonds.
Whenever needed, investors can also convert their digital gold into physical gold through the redemption process.
Why EGRs Could Become Popular
EGRs are being seen as a modern alternative to buying physical gold.
They offer several advantages:
Safe storage without keeping gold at home
Easy buying and selling on the stock exchange
Better liquidity
Assured gold quality
Direct holding in demat accounts
The platform is open for:
Retail investors
Jewellers
Bullion traders
Gold refineries
Trading Timings and Settlement Details
EGR trading takes place on NSE’s dedicated gold receipt 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 are settled on a T+1 basis, which means the trade is completed on the next working day.
With gold continuing to remain a popular investment option in India, NSE’s expanding EGR platform could change how investors buy and hold gold in the future.
