Electronic Gold Receipts (EGRs) – UPSC Prelims

Electronic Gold Receipts (EGRs)?
  • These are electronic receipts issued on the basis of a deposit of underlying physical gold.
  • EGRs could be traded on proposed gold exchange in India.
  • Gold Exchange would be a national platform for buying and selling EGRs issued against physical gold. Investors can trade in EGRs on stock exchanges and the proposed gold exchange.
  • The transaction in a gold exchange has been divided into three parts: conversion of physical gold into EGR, trading of EGR on a stock exchange and conversion of EGR into physical gold.
  • SEBI would regulate the entire ecosystem of the proposed gold exchange. It would be the sole regulator for the exchange, including for vaulting, assaying gold quality and fixing delivery standards.

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