The National Stock Exchange (NSE) has initiated trading in Electronic Gold Receipts (EGRs), with physical gold serving as the underlying asset. This innovation converts a standard 1000-gram gold bar into an EGR, enabling the transformation of physical gold into a secure, tradable electronic instrument within a regulated framework.
The introduction of EGRs allows investors to participate in the gold market in smaller denominations, enhancing liquidity and flexibility in a manner comparable to other financial instruments held in dematerialized form. This facilitates easier electronic ownership and the seamless conversion between physical gold and its digital equivalent.
According to NSE, the new product aims to bridge the gap between physical gold and financial markets by providing a regulated, secure, and technologically advanced platform for trading this precious commodity. EGRs are recognized as dematerialized securities that signify ownership of physical gold, which is safely stored in SEBI-accredited vaults and maintained electronically through depositories. Each EGR is fully backed by physical gold and can be traded on the exchange, thus integrating gold into the formal financial system.
Sriram Krishnan, Chief Business Development Officer of NSE, stated that by creating a seamless, secure, and digital avenue for gold investment, the exchange seeks to position gold as a modern and integrated asset class in capital markets. This initiative aims to reduce reliance on fragmented benchmarks and promote greater financial inclusion among stakeholders, including jewellers, refiners, traders, and institutional investors.
The introduction of EGRs is expected to foster a transparent ecosystem for gold trading, enabling efficient price discovery and improved participation in the market.
The article was published on May 4, 2026.
