India's NSE launches Electronic Gold Receipts to formalise gold holdings

The National Stock Exchange (NSE) introduced Electronic Gold Receipts (EGR) on May 4, creating digital securities that are fully backed by physical gold stored in SEBI‑accredited vaults. Each receipt is linked one‑to‑one with physical gold, allowing investors to hold, trade and redeem gold through their demat accounts without storing bars or coins at home.

The platform aims to bring a large share of India’s informal gold market – estimated at over 65 % of the country’s gold trade – into the regulated financial system. By dematerialising idle gold held in homes, temples and institutions, EGRs could reduce reliance on gold imports, lower foreign‑exchange outflows and provide new income opportunities such as lending the metal. The NSE says the product offers exchange‑level liquidity, transparent pricing and the option of physical delivery, distinguishing it from existing gold ETFs and sovereign gold bonds.