- EGRs are dematerialised securities representing ownership of physical gold stored in SEBI-regulated vaults.
- Gold is verified for weight and purity before the electronic receipt is issued in the investor’s demat account.
- Investors can buy and sell EGRs through registered stockbrokers using trading and demat accounts.
- NSE offers EGRs backed by 999-purity gold, in denominations ranging from 10 milligrams to one kilogram.
- Transactions follow a T+1 settlement cycle.
- Investors can hold EGRs electronically or convert them into physical gold.
- EGRs provide transparent pricing, secure storage and a regulated alternative to unregulated digital-gold products.
- Unlike gold ETFs, EGRs represent direct ownership of vault-backed physical gold.
- Key facts: Regulator: SEBI | Exchange: NSE | Underlying asset: Physical gold | Holding form: Demat
Question:
Q1. What does an Electronic Gold Receipt represent?
a) A loan secured against gold
b) Units of a gold mutual fund
c) Ownership of physical gold stored in a regulated vault
d) A futures contract based on gold prices
Answer: c) An EGR is a dematerialised security representing direct ownership of physical gold kept in a SEBI-regulated vault.
