New Delhi, Nov 6 (PTI) The National Stock Exchange (NSE) on Friday commenced live trading in electronic gold receipts, recording transactions worth Rs 23.34 crore on the opening day.
A total of 1,60,357 EGR contracts, representing around 6 kg of gold, were traded till 1625 hours, according to a joint statement by NSE and Augmont.
The segment also demonstrated orderly price discovery, with prices remaining within a narrow intraday range of Rs 1,450.50-1,460, and the bid-ask spread ranged between 50 paise and Re 1, according to a joint statement by NSE and Augmont.
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, while NSE provides the exchange infrastructure for trading.
Ketan Kothari, Whole-time Director at Augmont Enterprises Ltd, said that 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)