NSE launches Electronic Gold Receipts (EGRs)

The National Stock Exchange of India (NSE) has launched Electronic Gold Receipts (EGRs) from May 4, 2026, introducing a new segment to formalise and modernise India’s gold market. 

What are Electronic Gold Receipts (EGRs)?

• Dematerialised securities representing ownership of physical gold
• Gold is stored in SEBI-accredited vaults
• Held electronically in demat accounts
• Each EGR is fully backed (1:1) by physical gold.

Key Features

• Tradable on stock exchanges like other securities
• Enables seamless conversion: Physical gold ↔ Digital form
• Ensures: Assured purity and standardisation, secure storage.
• Allows participation in small denominations, improving accessibility
• Enhances liquidity and price discovery

EGRs vs Gold ETFs

Feature	EGRs	Gold ETFs
Backing	100% physical gold (1:1)	Gold-backed mutual fund
Physical Delivery	Allowed	Not available for retail
Nature	Direct ownership	Indirect exposure
Conversion	Physical ↔ Digital possible	No direct conversion

Significance

• Bridges gap between physical gold market and financial markets
• Promotes transparency and formalisation of gold trade.
• Reduces risks related to storage and purity concerns.
• Supports India’s move towards a digital financial ecosystem.

Regulatory Framework

• Governed by Securities and Exchange Board of India.
• Infrastructure includes:
  • Vault managers
  • Depositories
  • Stock exchanges.