Electronic Gold Receipts will cater to all market participants as well as commercial participants along the value chain
Electronic Gold Receipts will cater to all market participants as well as commercial participants along the value chain
Chief stock exchange BSE is introduced electronic gold receipt (EGR) on its platform, a move that will help in efficient and transparent price discovery of the yellow metal.
The exchange said in a statement that it has introduced two new products of purity 995 and 999 during Diwali Muhurta trading and the trading will be in multiples of 1 gram and delivery in multiples of 10 grams and 100 grams.
came after the announcement The exchange got the final nod from the Securities and Exchange Board of India last month (SEBI) to introduce EGR on its platform.
BSE got in-principle approval from SEBI in February following which the exchange conducted several mock trades in a test environment for its members to facilitate trading in EGR.
EGR will cater to all market participants, which means that buyers and sellers on the exchange will include individual investors as well as commercial participants of the value chain such as importers, banks, refiners, bullion traders, jewelery manufacturers and retailers.
Sameer Patil, CBO at BSE, Sameer Patil, “The launch of EGR represents a significant milestone not only for BSE but for the global bullion industry. BSE provides our stakeholders with access to high quality investment-based products and services. Committed to making it consistently accessible.” Said on 24 October.
The EGR platform will provide greater assurance in the quality of gold supplied, efficient price discovery and transparency in transactions. This can create a vibrant gold ecosystem in India by enabling the ability to convert gold into reality. India is the second largest consumer of gold globally with annual gold demand of around 800-900 tonnes and holds an important position in the global markets.
The country remains a price taker in global markets, and currently, does not play a significant role in influencing the pricing of the commodity.
A platform for EGR infuses transparency in gold spot transactions, enables India to emerge as the price setter, and will eliminate the current market inefficiencies.