NSE Augmont EGR segment records over Rs 33 cr turnover in debut trade

    New Delhi, Nov 6 (PTI) The National Stock Exchange (NSE), in association with integrated gold platform Augmont, on Friday started live trading in electronic gold receipts, recording transactions worth over Rs 33 crore on the opening day.

    A total of 2,27,444 EGR contracts were traded on the exchange, with total value reaching Rs 33.11 crore, as per the NSE data till 2200 hours.

    This marks a significant step in the development of the country's electronic gold market, coming less than six months after the exchange commenced live trading in EGRs (electronic gold receipts) on May 18.

    The segment also demonstrated orderly price discovery, with prices moving in a narrow intraday range of Rs 1,450.50-1,465, according to a joint statement by NSE and Augmont.

    NSE has partnered with Augmont Enterprises to strengthen the development of the EGR ecosystem in the country.

    The partnership aims to strengthen the exchange-regulated spot gold market by leveraging Augmont's capabilities in EGR creation, redemption, liquidity provision, delivery and price discovery.

    Each electronic gold receipt (EGR) represents 100 milligrams of physical gold, with the underlying metal held in Sebi-regulated vaults. Investors can buy and sell the receipts through their demat accounts and have the option of converting their holdings into physical gold, subject to the applicable framework.

    The segment follows a T+1 settlement cycle, under which trades executed on a particular day are settled on the next business day, facilitating the transfer of securities and funds through the exchange's regulated clearing and settlement mechanism.

    Electronic Gold Receipts are securities that represent ownership of

physical gold stored in vaults accredited by the Securities and Exchange Board of India (Sebi).

    Unlike conventional gold purchases, where buyers take possession of coins, bars or jewellery, EGR investors hold their gold electronically in a demat account, similar to shares.

    The product is designed to bring greater transparency to gold trading by allowing prices to be discovered through an organised exchange platform.

    The platform offers gold receipts in different denominations and purity standards, including 995 and 999 purity, allowing investors to choose products based on their investment requirements.

    The range includes units linked to small quantities of gold, making electronic ownership accessible to investors who may prefer smaller purchases.

    Under the collaboration, Augmont supports the creation, vaulting, redemption and liquidity ecosystem for EGRs, and NSE provides the exchange infrastructure for trading.

    Ketan Kothari, Whole-time Director at Augmont Enterprises Ltd, said day-one trading activity, continuous two-way quotations and orderly price discovery are important initial milestones for a new market segment.

    "At Augmont, we have brought together our refining capabilities and physical gold infrastructure to support the creation, vaulting and redemption of EGRs. We believe this initiative can play an important role in making physical gold more accessible, transparent and integrated with India's formal financial ecosystem," he said.

    "Our focus remains on strengthening the ecosystem and supporting its wider adoption among investors, brokers and other market participants."

    Augmont is one of India's leading integrated gold and silver companies, with a presence across the precious metals value chain spanning refining, wholesale trading, digital gold, jewellery, gold-backed lending and retail services.

(This story has not been edited by THE WEEK and is auto-generated from PTI)