Recently, BSE has announced EGR or the Electronic Gold Receipts as a way to stop people from hoarding gold. The announcement came on October 24, 2022. SEBI gave the final approval to launch EGRs. Two new products, 995 and 999 purity has been announced by the exchange on the Muhurat As per BSE, the trading will be in 1 gram multiples and deliveries in 10 and 100 gram multiples
How Do EGR’s Work?
EGRs work by creating an exchange that would provide liquidity and transparent pricing to deter people from hoarding gold. Buyers can convert the physical gold into Electronic Gold Receipt by depositing the yellow gold at approved delivery locations. Inter-operability Between Vault Managers subject to Availability of the Physical Gold.
Step-By-Step Process of EGR
- Submit a Request to Deposit Gold with a Vault Manager
- The quality of gold is examined to ensure its compliance with requirements
- Documents are thoroughly checked and deposits are Accepted
- After Gold Sourcing, a depository receipt is created for BSE trading
- Get in touch with our experts at DailyGong to know more about EGR