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India's Gold Market Goes Electronic as NSE Lists Gold Receipts
India's gold market enters a new phase as the NSE lists Electronic Gold Receipts, a regulated alternative to physical gold. The shift targets price transparency and liquidity.
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The NSE started trading Electronic Gold Receipts in May. The receipts are securities backed by physical gold in SEBI-regulated vaults. They trade on the exchange with T+1 settlement.
SEBI approved the framework in 2021. The government classified EGRs as securities under the Securities Contracts Regulation Act that December. The BSE launched the first EGR segment in October 2022 on the Muhurat trading session. The NSE followed in 2026.
Two purity grades trade: 999 and 995. Denominations run from 10 milligrams to 1 kilogram. Trading runs from 9 a.m. to 11:30 p.m., extended during U.S. daylight saving time.
The segment targets transparent price discovery, the exchange said. The same price applies across India at any moment. This contrasts with the unorganised bullion market, where premiums vary by city and dealer. The gold profile covers the broader market structure.
India's gold market is dominated by the cash market. The World Gold Council estimates over 80% of purchases happen outside the exchange. EGRs bring a SEBI-regulated alternative. The exchange provides settlement guarantee and standardised purity. For jewellers, the exchange's vault rules reduce the risk of counterfeit bars.