Categories: Economy

BSE Launched Electronic Gold Receipts

BSE, or the Bombay Stock Exchange, launched Electronic Gold Receipt (EGR) on its platform on  24 October 2022. It introduced two new products of 995 and 999 purity during the Muhurat trading on Diwali.

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How The Trading Will Happen:

Trading will be in multiples of 1 gram and deliveries in multiples of 10 gram and 100 gram. The EGR market will remain open from 9:00 am to 9.30 pm. It will have T+1 settlement. EGR allows efficient price discovery and standardization of gold, transparency in gold transactions, promotion of India Good Delivery Standard and settlement guarantee to the Investors.

India & The Gold:

India is the second largest consumer of gold globally, with annual gold demand of approximately 800-900 tones, and holds an important position in the global markets. Despite being second only to China, in consumption of gold, India has remained only as a price-taker in the global markets. To address the issue, Government of India have authorized the introduction of a gold exchange where the metal will be traded in Electronic Gold Receipts (EGR) form on Indian exchanges (BSE, NSE etc.).

How The BSE Functions:

BSE (formerly Bombay Stock Exchange) is India’s leading exchange group. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

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Piyush Shukla

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